Academy Corporation exchanges $1.6 million of its common stock and $132,000 of Academy bonds for all of Torrent Corporation's outstanding stock. As part of the same transaction, Torrent then merges into Academy, which receives assets having a $1.7 million FMV and a(n) $950,000 adjusted basis. In the merger, Arthur, a Torrent shareholder, exchanges his 15% interest in Torrent's single class of stock for $240,000 in Academy stock and $19,800 in Academy bonds. Arthur's 15% interest in Torrent is comprised of 4,000 shares having a $200,000 adjusted basis. Following the reorganization, Arthur owns 4% (2,000 shares) of Academy's stock. Academy's E\&P balance is $550,000. Requirement a. What is the amount of Torrent's recognized gain or loss in the asset transfer? (Enter a loss with a minus sign or parentheses. Enter a 0 if no gain or loss is recognized.) Recognized gain (loss) in the asset transfer = Requirement b. What is Academy's basis in the assets received in the exchange? Academy's basis in the assets acquired = Requirement c. What are the amount and character of Arthur's recognized gain or loss? (Use parentheses or a minus sign for a loss. Enter a 0 if no gain or loss is recognized, the select "N/A" as character.) Requirement d. What is Arthur's basis in the Academy stock? In the Academy bonds