Grady exchanges property with a basis of $$16,000$ and fair market value of $$19,200$ for $60\%$ of the stock of Eadie Corporation. Pedro acquired the other $40\%$ of the stock five years ago.

Calculate Grady's current income, gain, or loss and the basis he takes in his shares of Eadie stock as a result of this transaction.

Because this transaction

$ and $ the control of the corporation requirement, Grady has of basis in his shares of stock.

OPTIONS FOR BLANK WORDED PARTS ARE $($meets or does not meet$)$ The other part $($a loss or a gain$)$