Two parties seek to perform a like-kind exchange. The first party has real property Lamda with a FMV of $350,000 and a loan of $50,000. She purchased the property for $150,000 in 1996 and has since depreciated the property by $50,000. The second party has a piece of real property with a FMV of $250,000. The second party is a partnership who purchased their real property Beta for $100,000 and has since depreciated the property by $30,000. The partnership purchased the property in 2000. As part of the transaction, party 1 will transfer to the partnership the real property Lamda, plus the associated debt, for the partnership’s real property Beta plus $50,000 in cash.

Describe and compute the tax consequences to both parties.