Simi exchanged business Machine 1 for Machine 2 when the fair market value of both machines was $50,000. Simi originally purchased Machine 1 for $75,000, and Machine 1's adjusted basis was $40,000 at the time of the exchange. The seller of Machine 2 had an adjusted basis in Machine 2 of $55,000 at the time of the exchange. What is Simi's realized gain and recognized gain on the exchange and what is his adjusted basis in Machine 2 after the exchange? $10.000 realized in 50 recognized in and $40,000 adjusted basis in machine 2 None of the other combinations are correct $15,000 realized gain, $ $15.000 recognized gain and $50,000 basis in machine 2 $10,000 realized gain, $10,000 recognized gain and $50.000 adjusted basis in machine 2. $15.000 realized gain recognized gain and $35.000 adjusted basis in machine 2