Starling Corporation exchanges a yellow bus (used in its business) for Robin Corporation's gray bus and some garage equipment (used in its business). The assets have the following characteristics:

a. What are Starling€™s recognized gain or loss and basis for the gray bus and garage equipment?
b. What are Robin€™s recognized gain or loss and basis for the yellow bus?

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Yellow bus Gray bus Equipment Adjusted Basis $6,000 3,000 2,000 Fair Market Value $15,000 11,000 4,000