Hank exchanged an old asset with a $12,000 adjusted basis for a new asset with a $32,000 FMV plus $2,000 cash. Compute Hank's realized and recognized gain if the new and old assets are like-kind properties.

Group of answer choices

$2,000 realized gain; $2,000 recognized gain

$22,000 realized gain; $0 recognized gain

$20,000 realized gain; $0 recognized gain

$22,000 realized gain; $2,000 recognized gain