Oscar and Harriet agree to exchange apartment buildings and the mortgages on the buildings, with any difference in value to be paid in cash. Particulars of their respective buildings are as follows:

a. How much cash must be paid, and who must pay the cash to equalize the exchange?
b. What are Oscar's realized and recognized gains on the exchange and his basis in the apartment building acquired in the exchange?
c. What are Harriet's realized and recognized gains on the exchange and her basis in the apartment building acquired in the exchange?

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Oscar Harriet Fair market value Mortgage Adjusted basis $120,000 70,000 40,000 $112,000 52,000 55,000