This year, Neil, Incorporated exchanged a business asset for an investment asset. Both assets had a $$936,000$ appraised FMV$.$ Neil$$s book basis in the business asset was $$640,500,$ and its tax basis was $$589,500.$

Required:

Compute Neil$$s book gain and tax gain assuming the exchange was a taxable transaction.

Determine Neil$$s book and tax basis of the investment asset acquired in the taxable exchange.

Compute Neil$$s book gain and tax gain assuming the exchange was a nontaxable transaction.

Determine Neil$$s book and tax basis of the investment asset acquired in the nontaxable exchange.