1. Barbara transfers machinery having a $15,000 basis and a $35,000 FMV along with $10,000 cash to Moore Corporation in exchange for 50 shares or Moore stock. The machinery was used in Barbaras business, originally cost Barbara $50,000, and is subject to a $28,000 liability, which Moore assumes. Sam exchanges $17,000 cash for the remaining 50 shares of Moore stock.

1. What are the amount and character of Barbaras recognized gain or loss?
2. What is Barbaras basis in the Moore stock?
3. What is Moores basis in the machinery?
4. What are the amount and character of Sams recognized gain or loss?
5. What is Sams basis in the Moore stock?