Kim owns equipment that is used exclusively in her business. The equipment has an adjusted basis of $$11,200($FMV $$6,350).$ Kim

transfers the equipment and $$2,900$ cash to David for other equipment $($also used for business purposes$)$ that has an FMV of $$9,250.$

Required:

a$.$ What is Kim's recognized gain or loss on the exchange?

b$.$ What is Kim's adjusted basis in the equipment?