14. Billie and Bobbie both own separate residential real properties. Billie's property has a fair market value of $250,000 and a cost basis of $200,000. Bobbie's property has a fair market value of $275,000 and a cost basis of $180,000. Both individuals agree to exchange properties. In order to facilitate the exchange, Billie agrees to pay Bobbie and additional $25,000 cash. What is Billie's and Bobbie's cost basis in their replacement properties, respectively? a $205,000 and $175,000 b. $225,000 and $180,000 c. $180,000 and $200,000 d. None of the above. 15. In 2016, Denise purchased a customized machine, to be used in her business, for $22,000. In 2019, she sold the machine for $23,000 cash. At the time of the sale, the accumulated tax depreciation on the machine was $8,000. What is the amount and character of Denise's gain on the machine? a. $4,000 ordinary gain; $4,000 capital gain b. $0 ordinary gain; $9,000 capital gain c. $8,000 ordinary gain; $1,000 capital gain d. $8,000 ordinary gain; $0 capital gain