Firm M exchanged an old asset with a $$11,500$ tax basis and a $$29,000$ FMV for a new asset worth $$22,500$ and $$6,500$ cash.

Required:

If the exchange is nontaxable, compute Firm M$$s realized and recognized gain and tax basis in the new asset.

How would your answers change if the new asset were worth only $$11,000,$ and Firm M received $$18,000$ cash in the exchange?