(The first five questions are from the Basis and Nonrecognition Exchanges (1031) handout. I put this at the beginning of the test because you must be able to work through exchanges like this for a number of other exercises on the exam.)

Questions 1 through 5 require using the information directly below:

Templeton Properties and Jameson Rentals, both corporate landlords, exchange apartment buildings. The exchange qualifies as like-kind for both parties. Liabilities exist on each building and each company agrees to assume the liabilities encumbering the properties taken in the exchange. Jameson also gives cash to Templeton on the exchange. The properties GIVEN in the exchange (along with the liabilities attached to those properties) appear below each taxpayer.

Templeton	Basis	FMV	Jameson	Basis	FMV
Land and Building	$350,000	$550,000	Land and Building	$480,000	$460,000
			Cash given	$40,000	$40,000
Liability on property assumed by Jameson on transfer		$250,000	Liability on property assumed by Templeton on transfer		$200,000

Jameson's realized gain or loss is __________

DO NOT USE COMMAS OR DOLLAR SIGNS IN YOUR ANSWER!! IF THE ANSWER IS A LOSS, PLACE PARENTHESIS AROUND THE NUMBER. IF THERE IS NO GAIN OR LOSS, ENTER 0 (NOT 0.0).