V1. Ted Barnes has 100 acres of unimproved land, which he actively farms. Its cost basis is $10,000 but its fair market value on December 31, 2022 appears much higher. Ted trades it to Fred Lawyer for a city apartment building worth $70,000, which has a basis to Fred Lawyer of $30,000. None of the property is mortgaged, and Lawyer claimed straight-line deprecation on the apartment. What is Lawyer’s realized gain and loss on the exchange? What is Lawyer’s recognized gain or loss on the exchange? What is Lawyer’s basis for the farmland acquired?

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