Heather owned a beachfront house that she rented to tourists. Heathers property had a fair market value of $860,000, an adjusted basis of $637,000, and an outstanding mortgage of $135,000. Melissa and Jon Akins owned undeveloped land that they held for investment. The Akins property had a fair market value of $1,010,000, an adjusted basis of $782,000, and an outstanding mortgage of $480,000. Heather and the Akins entered into an exchange involving their real properties during 2021. As part of the exchange, the Akins paid $195,000 in cash to Heather, Heather assumed the Akins mortgage on the land, and the Akins assumed Heathers mortgage on the house. Heather will now hold the land for investment, and Melissa and Jon will rent the beachfront house to tourists. Heather also owned a mountain house that she rented to skiers. Heathers property had a fair market value of $468,000 and an adjusted basis of $394,000. Dirk owned a lakefront house that he had only used as his personal summer residence since 2001. Dirks property had a fair market value of $621,000, an adjusted basis of $337,000, and an outstanding mortgage of $149,000. Heather and Dirk entered into an exchange involving their real properties during 2021. As part of the exchange, Heather assumed the mortgage on Dirks property and Heather paid Dirk $4,000 in cash. Heather will now rent the lakefront house to vacationers, and Dirk will live full-time in the mountain house.

Required: Explain what gain or loss, if any, Heather, the Akins, and Dirk will realize and recognize from the exchanges described above and what adjusted basis they have in the properties received in these exchanges