This year, Neil Incorporated exchanged a business asset for an investment asset. Both assets had a $952,000 appraised FMV. Neils book basis in the business asset was $642,500, and its tax basis was $624,000.

Required:

1. Compute Neils book gain and tax gain assuming the exchange was a taxable transaction.
2. Determine Neils book and tax basis of the investment asset acquired in the taxable exchange.
3. Compute Neils book gain and tax gain assuming the exchange was a nontaxable transaction.
4. Determine Neils book and tax basis of the investment asset acquired in the nontaxable exchange.