Byron owns 375 of the 500 outstanding shares of Glean Corporation stock and 990 of the 1 comma 100 outstanding shares of Verve Corporation stock. Byron's basis in his Glean shares is $ 56 comma 250, and his basis in his Verve shares is $ 118 comma 800. Byron sells 350 of his Glean shares to Verve for $ 70 comma 000. At the end of the year of sale, Glean and Verve have E&P of $ 45 comma 000 and $ 42 comma 000, respectively.

Requirement a. What are the amount and character of Byron's recognized gain or loss on the sale?

Requirement b. What is Byron's basis in his remaining shares of the Glean and Verve stock?

Requirement c. How does the sale affect the E&P of Glean and Verve?

Requirement d. What basis does Verve take in the Glean shares it purchases?

Requirement e. How would your answer to Part a change if Byron owns only 550 of the 1 comma 100 outstanding shares of Verve stock?