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Hondo traded real property used in his business to a dealer in exchange for new,...

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Accounting

Hondo traded real property used in his business to a dealer in exchange for new, like-kind real property he will hold for investment. Hondo originally purchased the property for 72,000 and it had an adjusted basis of 42,000 at the time of the exchange. The new property had a fair market value of 58,300. Honda also received 5,200 cash in the transaction.

What is Hondo's recognized gain or loss on the exchange?

What is Hondo's basis in the new equipment?

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