Lisa exchanged land with a FMV (fair market value) of $2,650,000 with Lydia for her office building with a FMV of $3,600,000. The exchange meets all the requirements of Section 1031. Lisa also assumed the mortgage on the office building of $600,000 and gives Lydia $350,000 cash. Lisa’s basis in the land is $1,150,000. Lydia’s basis in the office building is $960,000. Answer the following questions. Show and label your work. 1) What is Lydia’s realized gain on the exchange? 2) What is Lydia’s recognized gain on the exchange? 3) What is Lydia’s basis in the land?