Hank exchanged an old asset with a $12,000 adjusted basis for a new asset with a $32,000 FMV plus $2,000 cash. Compute Hank's realized and recognized gain if the new and old assets are like-kind properties.

A. $20,000 realized gain; $0 recognized gain
B. $2,000 realized gain; $2,000 recognized gain
C. $22,000 realized gain; $2,000 recognized gain
D. $22,000 realized gain; $0 recognized gain


Answer: C

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