Taxpayer $1$ exchanged land with a FMV $($fair market value$)$ of $$2,650,000$ and basis of $$1,150,000$ with Taxpayer $2$ for an office building with a FMV of $$3,600,000$ and basis of $$960,000.$ The exchange meets all the requirements of Section $1031.$ Taxpayer $1$ also assumed the mortgage on the office building of $$600,000$ and gives Taxpayer $2$$$350,000$ cash.

Label your work and provide all calculation details for credit.

What is Taxpayer $2\text{'}$s recognized gain on the exchange?

What is Taxpayer $2\text{'}$s basis in the land?