OCD exchanged old realty for new like-kind realty. OCDs adjusted basis in the old realty was $31,700 ($60,000 initial cost $28,300 accumulated depreciation), and its FMV was $48,000. Because the new realty was worth only $45,000, OCD received $3,000 cash in addition to the new realty.

Required:

a1. Compute OCD's realized gain.

a2. Determine the amount and character of any recognized gain.

b. Compute OCDs basis in its new realty.