In part C. of this question, for Parcel #1 why is the Corp. Basis 10k? According to 362(a), the basis for the transferee (X Corp.) the basis for the transferee should be the same as the transferor, and increased by the gain recognized. Transferor had a 5k gain recognized , therefore shouldn't the basis for the transferor be 15k instead of 10k? Also, why is the total a 5k gain, if the adj. was 15k, while the FMV was 10k? Same applies for Parcel#2, why 10k for the Corp. basis if there was a gain of 2k, and why was a 2k loss in the total column if the adj. basis was 8k while the FMV was 10k? Very Confuse.