Question: Taxpayer exchanges a business use computer with an adjusted basis of $23,000 and a FMV of $32,000 for another business use computer with a FMV

Taxpayer exchanges a business use computer with an adjusted basis of $23,000 and a FMV of $32,000 for another business use computer with a FMV of $31,000 and $1,000 cash. What is the realized gain or loss? What is the recognized gain or loss? Please show work.

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