Question: David exchanged an apartment complex that he had owned for 8 years for farmland. The farmland was worth $ 1 , 0 5 0 ,

David exchanged an apartment complex that he had owned for 8 years for farmland. The farmland was worth $1,050,000, and David's basis in the apartment complex was $475,000. David received $100,000 cash in the transaction. How much is David's gain realized and gain recognized as a result of this exchange?

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