OCD exchanged old realty for new like-kind realty. OCD's adjusted basis in the old realty was $31,700 ($60,000 initial cost - $28,300 accumulated depreciation), and its FMV was $48,000. Because the new realty was worth only $45,000, OCD received $3,000 cash in addition to the new realty.

a. Compute OCD's realized gain, and determine the amount and character of any recognized gain.

b. Compute OCD's basis in its new realty.