Elaine exchanges a van that is used exclusively for business purposes for another van that also is to be used exclusively for business. The adjusted basis for the old van is $18,000, and its FMV is...

Elaine exchanges a van that is used exclusively for business purposes for another van that also is to be used exclusively for business. The adjusted basis for the old van is $18,000, and its FMV is $14,500.

a. Calculate Elaine’s recognized gain or loss on the exchange. b. Calculate Elaine’s basis for the van she receives.