Michael would like to exchange land that he owns $($adjusted basis $$125,000$ and FMV of $$160,000)$ for land in a neighboring county

$($adjusted basis $$108,000$ and FMV $$126,000)$ plus cash of $$34,000.$ Assume that the parcels of land are qualified property for treating

this as an excluded transaction, and that the cash is boot.

$($a$)$

Your answer is correct.

What is Michael's realized gain? $($Do not leave any field blank. If answer is zero, please enter $0$ for the amount.$)$

Realized gain $

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$($b$)$

Your answer is incorrect.

What is Michael's recognized gain? $($Do not leave any field blank. If answer is zero, please enter $0$ for the amount.$)$