Question: Maya exchanges an office building with a fair market value of $200,000 and a basis of $110,000 for $20,000 cash and a warehouse with a

Maya exchanges an office building with a fair market value of $200,000 and a basis of $110,000 for $20,000 cash and a warehouse with a fair market value of $300,000. In the exchange, she assumes the $120,000 mortgage on the warehouse.

a. Has Maya given or received boot? Explain.

b. Does Maya recognize any gain or loss on this exchange?

c. What is Maya’s basis in the warehouse that she acquires in the exchange?

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