Kim owns equipment that is used exclusively in her business. The equipment has an adjusted basis of S11.350 (FMV 56,425). Kim transfers the equipment and $2.950 cash to David for other equipment (also used for business purposes) that has an FMV of 59.375. Required: a. What is Kim's recognized gain or loss on the exchange? b. What is Kim's adjusted basis in the equipment? Amount a Basis of equipment