Jack and Jill decide to engage in a like-kind exchange of their farming equipment. Jacks equipment has a FMV of $40,000 and AB of $30,000. Jills equipment has a FMV of $60,000 and AB of $80,000. Jack gives Jill $20,000 in cash in the exchange.

Compute Jack and Jills realization and recognition of gains and the basis in the like-kind property each receives from the other.