LO.2 Tasha owns an SUV that she uses exclusively for personal purposes. Its original cost was $48,000, and the fair market value is $29,000. She exchanges the SUV and

$21,000 cash with an online dealer for a new SUV.

a. Calculate Tasha’s realized and recognized gain or loss.

b. Calculate Tasha’s basis for the new SUV.

c. Determine when Tasha’s holding period for the new SUV begins.

d. Would the answers in (a), (b), and

(c) change if Tasha first sold the old SUV to an unrelated party for $29,000 and then purchased the new SUV from the online dealer for $50,000? Explain.