Philip Jennings exchanges land he holds as an investment with Sarah Jones in a like-kind exchange. Philips land has a $145,700 tax basis and a $210,000 FMV. Sarahs land has a $227,000 FMV and a $184,300 tax basis. Philip also transfers $17,000 cash to Sarah as part of the exchange.

a. Compute Philip's realized and recognized gain or loss and Philip's tax basis in the new asset.

b. Compute Sarahs realized and recognized gain or loss and Sarahs tax basis in the new asset.