Captain Jack Sparrow exchanges qualified property, basis of $25,000 and fair market value of $42,000, for 65% of the stock in the East India Trading Corporation. The other 35% of the stock is owned by Barbossa, who acquired it five years ago.

Calculate Captain Jack Sparrows current income, gain, or loss and the basis he takes in his shares of East India Trading Corporation stock as a result of this transaction. Upload an excel, word, or pdf document with your calculations.