The Bogtown Corporation Owns a 20-Year Old Factory Building That

Multiple Choice

The Bogtown Corporation owns a 20-year old factory building that it wants to exchange for land to build a new factory. The building has a fair market value of $2,200,000 and has a basis of $800,000. Dundee Corporation is willing to exchange some land it has held for expansion for the building.

A) If the land has a fair market value of $2,200,000, what is Bogtown's realized and recognized gain and its basis in the land?
B) How would your answers to (a) change if Dundee's land is only valued at $1,900,000 and it gives Bogtown $300,000 cash on the exchange?
C) How would your answers to (a) change if the land is valued at $3,000,000 and Bogtown assumes an $800,000 mortgage on the land?