a. What is the amount of gain that may be excluded from Pedro's gross income? b. What would your answer be if the fair market value of the Shasta stock were only $810,000 upon its issue? c. What would your answer be if the stock were sold after two years? d. Can Pedro avoid recognizing gain by purchasing replacement stock? In October 2010, Pedro acquired 100% of Shasta Corporation common stock by transferring property with an adjusted basis of $1,900,000 and fair market value of $4,700,000. Shasta is a qualified small business corporation. On April 1, 2019, Pedro sells all of the Shasta Corporation common stock for $16,800,000. Read the requirements. Requirement a. What is the amount of gain that may be excluded from Pedro's gross income? (Enter a "0" if none of the gain may be excluded from the taxpayer's gross income.) The amount of gain that may be excluded from Pedro's gross income is