Problem 7-27 (Algorithmic) (LO. 5)

Sarah exchanges a building and land (used in its business) for Tyler's land and building and some equipment (used in its business). The assets have the following characteristics:

	Adjusted Basis			Fair Market Value
Sarahs real property	$5,840			$14,600
Tylers real property	2,920			11,680
Equipment	2,628			4,380

a. Sarah's recognized gain is $. Her adjusted basis in the land and building she acquired from Tyler is $, and her adjusted basis in the equipment is $.

b. Tyler's recognized gain is $, and his adjusted basis in the land and building he acquired from Sarah is $.