Part $2$: Like$-$Kind Exchange

Jane Delaney and Lisa Marie entered into a qualified exchange of like$-$kind property. Information about the properties being exchanged is provided below.

Data:

Parcel $1$ property transferred from Jane to Lisa:

Fair market value of Parcel $1$:$$154,000$

Jane's adjusted basis in Parcel $1$: $$127,000$

Remaining mortgage on Parcel $1$ assumed by Lisa: $$31,000$

Parcel $2$ property transferred from Lisa to Jane:

Fair market value of Parcel $2$: $$123,000$

Lisa's adjusted basis in Parcel $2$: $$112,000$

Part $2$: Questions

Answer the following questions on Tab $2$ of your Excel Spreadsheet based on the information provided. If the response is zero, enter a $0.$ Show all calculations.

a$.$ What is the gain recognized by Jane on the exchange?

b$.$ What is Jane's basis in the new Parcel $2$ received by Lisa?

Using the information above, download Form $8824($PDF F$.$ and record Jane's exchange using the form.

Print the completed PDF by going to Print and then "Save as PDF$."$ Note: If you try to save without printing first, your answers may be deleted.

Save your completed Form $8824$ in a folder with your completed Excel spreadsheet and submit following the instructions below.