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
$\begin{array}{llll}&\text { Adj. Basis }&\text { FMV }&\text { Adj. Basis }&\text { FMV }\\\hline\text { Equipment } & \$ 44,000 & \$ 60,000 & \$ 50,000 &\$43,000\\\text { Cash } & & & \$ 5,000&\$5,000\\\text { Liability on equipment }&\$12,000&\$12,000\end{array}$ $\begin{array}{llll}&\text { Adj. Basis }&\text { FMV }&\text { Adj. Basis }&\text { FMV }\\\hline\text { Equipment } & \$ 44,000 & \$ 60,000 & \$ 50,000 &\$43,000\\\text { Cash } & & & \$ 5,000&\$5,000\\\text { Liability on equipment }&\$12,000&\$12,000\end{array}$ 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?