Jordan owns a building used in his business with an adjusted basis of $340,000 and a $750,000 FMV. He exchanges the building for a building owned by Dexter, whose building has a FMV of $950,000 but is subject to a $200,000 liability. Jordan assumes the liability and uses the building in his business.
Answer each of the following - What is Jordan’s:
a. realized gain?
b. recognized gain?
c. basis in the building received from Dexter?