Jeff Jordan exchanges a truck used in his business plus $20,000 cash for a new truck with a fair market value of $34,000. His adjusted basis in the old truck is $16,000 and its fair market value is $14,000. What is Jeff's recognized gain or loss and the basis in the new truck?

a. $0 and $34,000

b. $20,000 gain and $16,000

c. $0 and $36,000

d. $2,000 loss and $34,000

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