Emily owns and operates a sole proprietorship, Made for You, a manufacturing company of cruelty-free makeup and personal products. On April 15, Year 4, Emily exchanges equipment with an adjusted basis of $4,000 and a fair market value of $3,000 for equipment with an adjusted basis of $3,600 and a fair market value of $2,500 and $700 cash.

a. What is Emily's realized gain/loss?

b. What is Emily's recognized gain/loss?

c. What is Emily's basis in the new equipment received?

d. What is the holding period for Emily in the new equipment received?