4) Fred Phillips traded a business building with an adjusted basis of $40,000 for another business building with a fair market value of $36,000 and received cash boot of $10,000, giving him a realized gain of $6,000. In the like-kind exchange, what is Fred's recognized gain or loss, and what is his basis in the new business building? A Recognized gain, $6,000; basis. $36,000. B Recognized gain, $0; basis. $40,000. CRecognized gain, $6,000; basis, $56,000. D Recognized loss, $4,000: basis, $50,000.