The Owner of M&N Milling Exchanged a Building Used in His

Essay

The owner of M&N Milling exchanged a building used in his business for a different building. M&N Milling's basis in the building was $200,000 and the owner still owes $60,000 related to the purchase of the building. The other party to the exchange, M. Grinding, assumed the liability along with the building and transferred a newer and smaller building worth $300,000 to M&N Milling. a. Calculate M&N Milling's
1. Realized gain on the exchange. $\quad$ $\quad$ $\quad$ $\quad$ $\quad$$\quad$ $\quad$ $_____
2. Recognized gain on the exchange. $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $______
b. Calculate the adjusted basis of the newer machine. $\quad$ $\quad$ $________