$3.(12$ points$)$ Jeff Donner, an individual, sold his office building $($FMV $$2$ million$)$ and land $($FMV $$1$million$)$ on which there was a mortgage on the building of $$1\mathrm{.}6$ million. The land had an original cost of $$1$ million. The building had an original cost of $$1$ million and a current basis of $$\mathrm{.}7$ million. The mortgage was paid off by the accommodator and the $$1\mathrm{.}4$ million balance was held in trust. Jeff notified the accommodator within $45$ days of the purchase of two properties he is considering.

$1.$ Land with a market value of $$3\mathrm{.}2$ million Property

$2.$ Land with a market value of $$2\mathrm{.}5$ million

a$.$ If Jeff purchases Property $1($closing within $180$ days$),$ what is Jeff's realized gain, recognized gain, if any $($and character$)$ and basis in the new land. Assume Jeff secures a new mortgage of $$1\mathrm{.}5$ on the land and pays the difference in cash.

b$.$ If Jeff purchases Property $2($closing within $180$ days$),$ what is Jeff's realized gain, recognized gain, if

any, $($and character$)$ and basis of the new land. Assume Jeff secures a new mortgage on the land of $$1\mathrm{.}1$ million and pays no additional amount in cash.