Sammy Exchanges Land Used in His Business in a Like-Kind $\quad$

Essay

Sammy exchanges land used in his business in a like-kind exchange.The property exchanged is as follows: $\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\text { Property Surrendered }$$\text { Property Received }$
$\begin{array}{lcccc}& \underline{\text { Adi. Basis }}& \underline{\text { FMV}}& \underline{\text { Adj. Basis }} & \underline{\text { FMV }}\\\text { Land } & \$ 44,000 & \$ 60,000 & \$ 50,000 & \$ 43,000 \\\text { Cash } & & & \$ 5,000 & \$ 5,000 \\\text { Liability on land } & \$ 12,000 & \$ 12,000 & & \\{\begin{array}{l}\text { The other party assumes the liability. }\end{array}} & & &\end{array}$
a.What is Sammy's recognized gain or loss?
b.What is Sammy's basis for the assets he received?