Garrison corporation transfers unimproved land to Rucker Corporation and receives in exchange improved land with FMV of 600,000 and 250,000 of cash. Rucker's adjsuted basis in the imporved land is 750,00. Garrison's adjusted basis in the unimproved land is 400,000 plus the land at the time of sale is a subject to mortgage of 200,000 that Rucker assumes. Rucker's improved land is subject to a mortgage of 150,000 that Garrison assumes.
a. find out Garrison's realized and recognized gain or loss on the eschange of the unimproved land and its basis in the newly acquired improved land.
b. find out Rucker's realized and recognized gain or loss on the eschange of the unimproved land and its basis in the newly acquired unimproved land.