Emily owns and operates as 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?

Emily's realized gain/loss is $________

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

Emily's recognized gain/loss is $_________

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

Emily's basis in the anew equipment received $__________

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

Emily's holding period for the new equipment begins on the date of exchange, (March 10 Year 4, April 5 Year 4,june 5 Year 4).