TP exchanged an office building for a warehouse on January 5, 2021. She had an adjusted basis of $0 in the office building and the warehouse had a FMV of $300,000. TP had taken $200,000 of accumulated depreciation on the office building. (18-year accelerated depreciation under ACRS on non-residential property). As part of the exchange, the exchange partner assumed a $50,000 mortgage on the office building. Hint: Remember nonresidential real property depreciated under ACRS is 1245 property, not 1250 property.

a. What is the realized and recognized gain on the exchange?

b. What is the character of any recognized gain?

c. What is TPs adjusted basis in the new warehouse?