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Prater Inc. enters into an exchange in which it gives up its warehouse on 10 acres...

Prater Inc. 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:

Transferred FMV Original
Basis		 Accumulated
Depreciation
Warehouse $ 392,500 $ 311,000 $94,000
Land 90,500 90,500
Mortgage on warehouse 50,500
Cash 23,000 23,000

Assets Received FMV

Land $455,500

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

Realized gain
Recognized gain
Adjusted basis in new property

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ekkarill92 answered 2 years ago
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