Perry Inc.and Dally Company entered into an exchange of real property.Here is the information for the properties to be exchanged. 
Pursuant to the exchange,Perry assumed the mortgage on the Dally property,and Dally assumed the mortgage on the Perry property.Compute Perry's gain recognized on the exchange and its tax basis in the property received from Dally.
Definitions:
Affirming the Consequent
A logical fallacy in which a conclusion is incorrectly derived from a conditional statement (if A, then B; B, therefore A).
Straw Man Fallacy
A logical fallacy that involves misrepresenting an argument to make it easier to attack.
Appeal to Emotion
A logical fallacy where an argument is made by manipulating the emotions of the audience rather than by using valid reasoning.
Circular Reasoning
A logical fallacy in which the conclusion is assumed in one of the premises.
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