John owned a beachfront house that he rented to tourists. Johns property had a fair market value of $629,000, an adjusted basis of $552,000, and an outstanding mortgage of $413,000. Ginger and Louis Mackenzie owned a house downtown that they rented to students. The Mackenzies property had a fair market value of $534,000 and an adjusted basis of $137,000. John and the Mackenzies exchanged their real properties during 2022. As part of the exchange, John paid $318,000 in cash to the Mackenzies, and the Mackenzies assumed Johns mortgage on his property. John will now rent the downtown house to students, and Ginger and Louis will rent the beachfront house to tourists. John also owned a mountain house that he rented to skiers. Johns property had a fair market value of $327,000 and an adjusted basis of $245,000. Diane owned a lakefront house that she had only used as her personal summer residence since 2016. Dianes property had a fair market value of $487,000, an adjusted basis of $279,000, and an outstanding mortgage of $123,000. John and Diane exchanged their real properties during 2022. As part of the exchange, John assumed the mortgage on Dianes property and paid $37,000 in cash to Diane. John will now rent the lakefront house to vacationers, and Diane will live in the mountain house. Required: Explain what gain or loss, if any, John, the Mackenzies, and Diane will realize and recognize from the exchanges described above and what adjusted basis they have in the properties received from those exchanges.