In October $2010,$ Jorge acquired$100\%$ of Alpha Corporation common stock by transferring property with an adjusted basis of $ $1$ comma $700$ comma $000$ and fair market value of $ $4$ comma $300$ comma $000.$ Alpha is a qualified small business corporation. On April$1,2022,$ Jorge sells all of the Alpha Corporation common stock for $ $16$ comma $100$ comma $000.$

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Part $1$

Requirement a$.$ What is the amount of gain that may be excluded from Jorge$\text{'}$s gross$$ income? $($Enter a$"0"$ if none of the gain may be excluded from the$$ taxpayer's gross$$ income.$)$

The amount of gain that may be excluded from Jorge's gross income is

Part $2$

Requirement b$.$ What would your answer be if the fair market value of the Alpha stock were only $ $830$ comma $000$ upon its$$ issue? $($Enter a$"0"$ if none of the gain may be excluded from the$$ taxpayer's gross$$ income.$)$

Under this condition, the amount of gain that may be excluded from Jorge's gross income is

Part $3$

Requirement c$.$ What would your answer be if the stock were sold after two$$ years? $($Enter a$"0"$ if none of the gain may be excluded from the$$ taxpayer's gross$$ income.$)$

If the stock were sold after two years, the amount of gain that may be excluded from Jorge's gross income is

Part $4$

Requirement d$.$ Can Jorge avoid recognizing gain by purchasing replacement$$ stock?

A$.$

Yes. If Jorge acquires $ $4$ comma $300$ comma $000$ or more of qualified stock within six months no gain is$$ recognized, providing the original stock was held for over five years.

B$.$

Yes. If Jorge acquires $ $16$ comma $100$ comma $000$ or more of qualified stock within $60$ days no gain is$$ recognized, providing the original stock was held for over six months.

C$.$

Yes. If Jorge acquires $ $10$ comma $000$ comma $000$ or more of qualified stock within $60$ days no gain is$$ recognized, providing the original stock was held for over five years.

D$.$

No$.$ Jorge must recognize gain on the sale of the Alpha Corporation common stock because the sale exceeded $ $10$ comma $000$ comma $000.$