Can you check my answer for me? This is an intro to taxation related question (about basis). Are my reasonings correct? Please add on to my reasoning if its wrong or right, because finals are coming up and I am hustling to go over all the materials.

-----So for number one, would the answer be 2,000? Basically it is treated as boot?

1. Mary transfers equipment with a basis of $10,000 and FMV of $15,000 in an exchange

that qualifies as a 351 transaction. She receives stock worth $13,000 and a note (i.e.,

notes receivable to her, notes payable to the corporation) worth $2,000. How much, if

any, gain will she recognize on this exchange?

a) $0

b) $2,000

c) $3,000

d) $5,000

------For her basis, would it be 10,000 because we use her own original basis?

2) In the example in question 3, what is Marys basis in the shares she receives?

a) $10,000

b) $12,000

c) $15,000