Dena owns 500 acres of farm land in southeastern Maryland.
Her adjusted basis for the land is $480,000 and there is a $400,000 mortgage on the land.
She exchanges the land for an office building owned by Chris in Newark, New Jersey.
The building has a fair market value of $900,000.
Chris assumes Dena’s mortgage on the land.
What is the amount of Dena’s recognized gain or loss on the exchange?