Jamie owns 80% of Opal Corporation stock. He transfers a business automobile to Opal in exchange for additional Opal stock worth $10,000 and Opal's assumption of both his $2,500 automobile debt and his $4,500 education loan. The automobile originally cost Jamie $22,000 and, on the transfer date, has a $9,500 adjusted basis and a $17,000 FMV.

Read the requirements

.

.

Requirement a. What are the amount and character of Jamie's recognized gain or loss?

Jamie realizes a

and recognizes a

This is treated as

Requirement b. What is Jamie's basis in his additional Opal shares?

Jamie's basis in the stock is

.

Requirement c. When does Jamie's holding period for the additional shares begin?

Jamie's holding period for the additional shares

Requirement d. What basis does Opal take in the automobile?

Opal corporation's basis in the automobile is

.