The owner of M&N Milling exchanged a building used in his business for a different building. M&N Millings basis in the building was $200,000 and the owner still owes $60,000 related to the purchase of the building. The other party to the exchange, M. Grinding, assumed the liability along with the building and transferred a newer and smaller building worth $300,000 to M&N Milling.

a. Calculate M&N Millings
1. Realized gain on the exchange.	$__________
2. Recognized gain on the exchange.	$__________
b. Calculate the adjusted basis of the newer building.	$__________