Hosha exchanges all of her Leaf stock for Petal stock plus $5,000 cash. The exchange is pursuant to a tax-free reorganization. Hosha paid $25,000 for the Leaf stock five years ago. The Petal stock received by Hosha has an $18,000 fair market value.

1. What is Hoshas realized and recognized gain/loss from the reorganization? Prepare your solution using spreadsheet software such as Microsoft Excel.

2. What is Hoshas basis in the Petal stock she received?