Problem 7-25 (Algorithmic) (LO. 2) Katie exchanges a building and land (used in its business) for Tyler's land and building and some equipment (used in its business). Adjusted Basis Fair Market Value Katie's real property $5,840 $14,600 Tyler's real property 2,920 11,680 Equipment 2,628 4,380 a. What are Katie's recognized gain or loss and basis for the land and building and equipment acquired from Tyler? Her recognized gain is $ 9,052 X. Her adjusted basis in the land and building she acquired from Tyler is 5,840, and her adjusted basis in the equipment is $ 9,052 X Feedback Check My Work If the taxpayer in a like-kind exchange gives or receives some property that is not like-kind property, recognition may occur. b. What are Tyler's recognized gain or loss and basis for the land and building acquired from Katie? Tyler's recognized gain is 9,052 X, and his adjusted basis in the land and building he acquired from Katie is 9,052 X