= Homework: Unit 3 Lab Assignment 2 Question 1, PC:2-35 (similar to) Part 1 of 4 HW Score: 25.71%, 9 of 35 points O Points: 0 of 8 Gary incorporates his sole proprietorship as Deluxe Corporation and transfers its assets to Deluxe in exchange for all 100 shares of Deluxe stock and two $15,000 interest-bearing notes. The stock has a[n) $110.000 FMV. The notes mature consecutively on the first two anniversaries of the incorporation date. The assets transferred are as follows: (Click the icon to view the asset information) Read the requirements Requirement a. What are the amounts and character of Gary's recognized gains or losses? Complete the table to determine the amount and character of Gary's recognized gain or loss for each asset type. If an asset does not have a gain or loss, select "NA" for the character type. (Round the percentages to the nearest whole percent and dollar amounts to the nearest whole dollar. Use parentheses or a minus sign for losses. Complete all answer boxes. For amounts with a 50 ba . $0 Cash Equipment Building Land Asset's FMV - X Asset information Percent of total FMV % Consideration received in exchange for asset: Stock Adjusted Notes Assets Basis FM Total proceeds Cash $ 11,200 S 11.200 Minus: Adjusted basis Equipment $ 115,000 (65,000) Realized gain (loss) Minus: Accumulated depreciation ) 50,000 85,800 Building $ 115,000 Boot received (60,000) Minus: Accumulated depreciation 55,000 40.600 Recognized gain (loss) Land 18.800 22.400 Character of gain (loss) Total $ 135,000 $ 140,000 ( Print Done