Question: Harrison exchanges his apartment complex for Hanna's farm, and the exchange qualifies as a like-kind exchange. Harrison's adjusted basis for the apartment complex is $610,000

Harrison exchanges his apartment complex for Hanna's farm, and the exchange qualifies as a like-kind exchange. Harrison's adjusted basis for the apartment complex is $610,000 and the complex is subject to a $170,000 liability. The FMV of Hanna's farm is $820,000 and the farm is subject to a $80,000 liability. Each asset is transferred subject to liability.

Requirement

What is Harrison's recognized gain and the basis of the new farm?

Begin by calculating the realized gain.

First identify the formula, then enter the applicable amounts and calculate the realized gain.

The realized gain is $

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