A taxpayer is trading in a building used solely for business purposes for land to be used in his business. The building originally cost $35,000 and he has taken $18,000 in depreciation. The old building is currently worth $20,000 and the new land the taxpayer wants in exchange is only worth $16,500. The other party agrees to give the taxpayer a trailer worth $3,500 in addition to the new land.

What is the gain or loss realized, recognized, and basis in the new asset?