Matthew Exchanges an Investment Apartment Building for a Parcel of Land

Short Answer

Matthew exchanges an investment apartment building for a parcel of land. The apartment building has a fair market value of $80,000 and an adjusted basis of $95,000. The land's value is $60,000. Matthew receives $20,000 cash in the exchange. What is Matthew's recognized gain or loss) on the exchange and his basis in the land? Gain Loss) Recognized Basis