LO.2 Stephanie owns a machine (adjusted basis of $60,000; fair market value of

$95,000) that she uses in her business. She exchanges it for another machine (worth

$70,000) and stock (worth $25,000). Determine Stephanie’s:

a. Realized and recognized gain or loss on the exchange.

b. Basis in the new machine.

c. Basis in the stock she received.