Business K exchanged an old asset $($FMV $$98,000)$ for a new asset $($FMV $$98,000).$ Business K$$s tax basis in the old asset was $$122,000.$

Required:

Compute Business K$$s realized loss, recognized loss, and tax basis in the new asset assuming the exchange was a taxable transaction.

Compute Business K$$s realized loss, recognized loss, and tax basis in the new asset, assuming the exchange was a nontaxable transaction.

Six months after the exchange, Business K sold the new asset for $$109,000$ cash. How much gain or loss does Business K recognize if the exchange was taxable? How much gain or loss if the exchange was nontaxable?