John and Abby formed Stizzle Corporation on January 1 of Year 1. On that date, John contributed a capital asset with a fair value of $50k and an adjusted basis of of $28k, which John owned for 5 yrs, andCapital Asset with a FMV of $50k and an adj basis of $55k, which John had owned for two months, to Stizzle Corporation in exchange for 90 shares of Stizzle stock and $10k cash; and Abby contributed stock in Hally Corporation (reprsenting 1% ownership in Hally) with a FMV of $70k, and an adjusted basis of $25k and managerial services (all performed in Year 1) worth $20K, also in exchange for 90 shares of Stizzle stock.

Additionally during Yr 1

-Stizzle received $43k of revenue from operations

-Stizzle received $5k dividend from Hally

-Stizzle properly took $8k of deprecation of Capital Asset

Additionally during Yr 2:

-Stizzle receievd $20k of revenue from operations

-Stizzle received $5k divided from Hally

-Stizzle sold the Capital Asset for $52K

-Stizzle distributed $5k cash to John and $5k cash to Abby

1. What is Stizzle taxable income in Year 1 and Year 2

2. What income, gain/loss would Abby recognize if Abby sold all her shares to Z for $60,000

3. What income, gain/losss, does John recognzie from the transfer on Jan 1 of Yr 1?