Midterm Exam Fall 2020 - Compatibility Mode - Saved to my Mac Mailings Review View Table Design Layout . Tell me AaBbCcDdEc AaBbCcDdEe AaBbCCD AaBbCcDdE ES Normal No Spacing Heading 1 Heading 2 Q3 Joseph exchanged farmhouse that he used in his farming business for a building used by Sandy in her motorcycle manufacturing business. The farmhouse had a FMV of $875,000 and cost $415,000. Joseph $245,000 of depreciation, but because of an error, the amount of depreciation he should have taken was $330,000. The building had a FMV of $700,000 and an adjusted basis of $825,000. Additionally, Sandy agreed to assume Joseph's mortgage of $150,000 and give Joseph cash of $25,000. What is Joseph's realized gain or loss? Calculate Joseph's basis in the building after the transaction. How much gain or loss did Joseph defer? Explain your answer. Determine Sandy's recognize gain or loss show your calculation and explain your