25. LO.5 Katie exchanges a building and land (used in its business) for Tyler’s land and building and some equipment (used in its business).

Adjusted Basis Fair Market Value Katie’s real property $120,000 $300,000 Tyler’s real property 60,000 220,000 Equipment 50,000 80,000

a. What are Katie’s recognized gain or loss and basis for the land and building and equipment acquired from Tyler?

b. What are Tyler’s recognized gain or loss and basis for the land and building acquired from Katie?