Thorogood Company held land with a fair market value of $250,000 subject to a $80,000 mortgage. Thorogood exchanged this land for another parcel of land with a fair market value of $160,000. In addition, Thorogood received $10,000 in cash and the other party assumed the mortgage on Thorogoods original land. Thorogood will use the new parcel of land in its business. The land that Thorogood gave in exchange had an adjusted basis of $180,000 at the time of the exchange. Required: a. What is the amount of gain that Thorogood must recognize? b. What is Thorogood's adjusted basis in the new land it received in the exchange?