Question: Charlotte Citron exchanged business machines with Darlene Darbey, Charlotte's machine had an adjusted basis of $10,500 and a fair market value of $9,000. Darlene's machine had an adjusted basis of $8,500 and a fair market value of $6,000 and Darlene gave Charlotte $3,000 cash. What is Charlotte's realized gain or loss, recognized gain or loss, and the basis of the new property? Answer the same questions for Darlene.