Exercise 18-20 (Algorithmic) (LO. 1) 18-20 duo. Determine the effects of 351 for the following taxpayers. Grady exchanges qualified property, basis of $23,400 and fair market value of $19,500, for 60% of the sto of Eadie Corporation. The other 40% of the stock is owned by Pedro, who acquired it five years ago. Because this transaction v the control of the corporation requirement, Grady has income of and ba stock. meets does not meet