1.Jim received 80% of Gold Corporation's stock in exchange for property transferred to Gold. The property Jim transferred included a building with a cost of $1,200,000 and a FMV of $1,800,000.The corporation also assumed a $300,000 mortgage associated with the building, as well as Jim's $2,000 education loan that did not have a bona fide business purpose.

1. What is the amount and character of Jim's recognized gain or loss?

1. What is Jim's basis in his shares of Gold stock?

1. How would your answers to the questions above change if Gold corporation did not assume Jim's $2,000 education loan?