Sammy Exchanges Equipment Used in His Business in a Like-Kind

Essay

Sammy exchanges equipment used in his business in a like-kind exchange. The property exchanged is as follows:
Property Surrendered Property Received
$\begin{array}{lllll}&\text { Adj. Basis}&\text { FMV }&\text { Adj. Basis}&\text { FMV }\\\text { Equipment } & \$ 44,000 & \$ 60,000 & \$ 50,000 & \$ 43,000 \\\text { Cash } & & & \$ 5,000 & \$ 5,000 \\\text { Liability on equipment } & \$ 12,000 & \$ 12,000 & &\end{array}$

$\text { The other party assumes the liability. }$
a. What is Sammy's recognized gain or loss?
b. What is Sammy's basis for the assets he received?