Kevin incorporates his sole propreitorship as great corporation and transfers its assets to great in exchange for all 100 shares of great stock and five $6000 interest bearing notes. The stock has $120,000 FMV. The notes mature consecutively on the first five anniversaries of the incorporation date. The assets transferred are as follows.

Asset		Adjusted Basis	FMV
Cash		7500	7500
Equipment	135000
Minus Acc. Depr	(85000)	50000	78000
Building	120000
Minus Acc. Depr	(70000)	50000	36000
Land		22500	28500
		130000	150000

What are the amounts and Character of Kevin's recognized gain or loss?

Complete the table to determine the amount and character of kevin's recognized gain or loss for each asset type.

	Cash	Equipment	Building	Land
Asset's FMV
Percent of total FMV
consideration received in exchange for asset
stock
notes
total proceeds
Minus adjusted basis
realized gain (loss)
boot received

recognized gain (loss)

Character of gain (loss)

b. what is Kevin's basis in the great stock and notes?

c. what is great's basis in the property received from Kevin?