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Question - LaRhonda owns an office building that has an adjusted basis of $43,800. The building is subject to a mortgage of $19,000. She transfers the building to Miguel in exchange for $14,600 cash and a warehouse with an FMV of $48,600. Miguel assumes the mortgage on the building.
Required -
1. What are LaRhonda's realized and recognized gain or loss?
2. What is her basis in the newly acquired warehouse?
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