Problem $11-61($LO $11-6)($Algo$)$Problem $11-61($LO $11-6)($Algo$)$

Prater Incorporated enters into an exchange in which it gives up its warehouse on $10$ acres of land and receives a tract of land. A

summary of the exchange is as follows:

What are Prater's realized and recognized gain on the exchange and its basis in the assets it received in the exchange?

Prater Incorporated enters into an exchange in which it gives up its warehouse on $10$ acres of land and receives a tract of land. A

summary of the exchange is as follows:

What are Prater's realized and recognized gain on the exchange and its basis in the assets it received in the exchange?

Answer is complete but not entirely correct.