$$8,000FMV.$ Requirements

a$.$ What are the amount and character of Nicole's recognized gain or loss?

b$.$ What are Nicole's bases in the Parker stock and note?

c$.$ What is Parker's basis in the machinery?

Read the requirements.

Requirement a $.$ What are the amount and character of Nicole's recognized gain or loss?

Begin by identifying Nicole's realized gain or loss and recognized gain or loss. $($Enter a loss with a minus sign or parentheses.$)$

Nicole's realized gain $($loss$)=$

Nicole's recognized gain $($loss$)=$