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Linda’s realized gain is $90,000 and her recognized gain is $40,000. The basis of her acquired property is 43. $150,000. FMV of property received $200,000Plus: Mortgage assumed by Carol 60,000Less: Mortgage assumed by Linda 20,000Total consideration received $240,000Less: Adjusted basis 150,000Gain realized $90,000Gain recognized ($60,000 −$20,000) $40,000Method I: Basis of old property $150,000Plus: Gain recognized 40,000Plus: Mortgage assumed by Linda 20,000Less: Mortgage assumed by Carol 60,000Basis of new property $150,000