In a like$-$kind exchange, Tiffany gave up her investment$-$use real property $($FMV $$25,000,$ adjusted basis $$18,000)$ and $$10,000$

for a larger piece of investment$-$use real property $($FMV $$35,000).$ What is the gain realized and recognized on the exchange?

$\_\_\_\_\_\_$ realized gain; $\_\_\_\_\_$ recognized gain.

$$0$; $$7,000.$

$$7,000$; $$0.$

$$7,000$; $$7,000.$

$$10,000$; $$0.$