Cha trades land worth $50,000 subject to a mortgage of $8,000, and receives land worth $35,000, a machine worth $7,000 and the other party assumes Cha's mortgage. Cha's basis is $42,000.

Show the calculation of Cha's gain or loss on the trade, the basis of the new land, and the basis of the machine. Label each line and include gain realized and gain recognized.