CC Company exchanged a depreciable asset with a $17,500 initial cost and a $10,100 adjusted basis for a new asset priced at $16,500.

a.Assuming that the assets do not qualify as like-kind property, compute the amount and character of CCs recognized gain and its basis in the new asset.

b.Assuming that the assets qualify as like-kind property, compute the amount and character of CCs recognized gain and its basis in the new asset.