Garrison Corporation transfer unimproved land to Rucker Corporation and receives in exchange improved land with an FMV of $600,000 and $250,000 of cash. Rucker's adjusted basis in the improved land is $750,000. Garrison's adjusted bais in the unimproved land is $400,000 and the FMV of the land is $900,000. At the time of the exchange Garrison's unimproved land is subject to a $200,000 mortgage that Rucker assumes. Rucker's improved land is subject to a mortgage of $150,000 that Garrison assumes.

A. Compute Garrison's realized and recognized gain or loss on the exchange of the unimproved land and its basis in the newly acquired improved land.

B. Compute Rucker's realized and recognized gain or loss on the exchange of the improved land and its basis in the newly acquired unimproved land.