1a. Carey exchanges real estate for other real estate in a qualifying like-kind exchange. Carey's basis in the real estate given up is $120,000, and the property has a fair market value of $165,000. In exchange for her property, Carey receives real estate with a fair market value of $100,000 and cash of $15,000. In addition, the other party to the exchange assumes a mortgage loan on Carey's property of $50,000.

a. Calculate Carey's recognized gain, if any, on the exchange. ___________________

b. Calculate Carey's basis in the property received. ________________________________

1b. Larry Gaines, a single taxpayer, age 42, sells his personal residence on November 12, 2016, for $148,000. He lived in the house for 7 years. The expenses of the sale are $9,000, and he has made capital improvements of $7,000. Larry's cost basis in his residence is $85,000. On November 30, 2016, Larry purchases and occupies a new residence at a cost of $148,000. Calculate Larry's realized gain, recognized gain, and the adjusted basis of his new residence.

a. Realized Gain _________________________

b. Recognized Gain _______________________

c. Adjusted Basis of New Property __________________