1031 Tax Exchange--What Exactly comprises the Net Sales Price?

[Richard Aaron]

I'm selling a rental property for $232,000. There is a $60,000 loan balance owed on it. After commission and closing costs and paying off the first, I will net $158,000. 

1. Can someone clarify for me which of the above values ($232,000 or $158,000) is the Net Sales Price?

2. If I purchase another rental  that is less than the Net Sales Price, will that totally nullify the 1031 tax exchange or would I just have to pay capital gains taxes and some depreciation recapture on the difference (the boot) between the Net Sales Price and the lower price I pay for my next rental? 

Thank you