Leon exchanges an office building which he held as investment property for a bowling alley. His office building has a basis of $175,000 and a fair market value of $160,000, and it is subject to a mortgage of $40,000. The fair market value of the bowling alley is $120,000. The owner of the bowling alley will assume Leon's debt on the office building.

a. Is this a like-kind exchange? Explain.

b. What is Leon's realized gain or loss on the office building?

c. How much of the realized gain or loss is recognized on the exchange?

d. What is the character of the recognized gain or loss?

e. How much of the realized gain or loss is deferred?

f. What is the basis of the bowling alley acquired in the exchange?