In 2021, Debbie receives stock as a gift from her uncle, Jerry. At the time of the gift, Jerrys adjusted basis in the stock is $27,000 and the fair market value of the stock is $17,000. One month later when the stock is worth $16,500, Debbie trades the stock for bonds with a fair market value of $15,000 and $1,500 cash (i.e. Debbie received a total value of $16,500 on the exchange, $15,000 in bonds and $1,500 in cash).

Part 1: What is Debbie's recognized gain or loss from the exchange?

Part 2: What is Debbie's basis in the bonds?