Question: Firm M exchanged an old asset with a $ 1 1 , 5 0 0 tax basis and a $ 2 9 , 0 0

Firm M exchanged an old asset with a $11,500 tax basis and a $29,000 FMV for a new asset worth $22,500 and $6,500 cash.
Required:
If the exchange is nontaxable, compute Firm Ms realized and recognized gain and tax basis in the new asset.
How would your answers change if the new asset were worth only $11,000, and Firm M received $18,000 cash in the exchange?

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