Nicole transfers to Ruffles Corporation depreciable machinery originally costing $$15,000$ and now having a$($ n $)$ $$13,000$ adjusted basis. In exchange, Nicole receives all $175$ shares of Ruffles stock

having a$($n$)$ $$23,000$ fair market value $($FMV$)$ and a three$-$year Ruffles note having a$($n$)$ $$9,000$ FMV$.$

Read the requirements.

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

Begin by identifying Nicole's realized gain or loss and recognized gain or loss. $($Enter a loss with a minus sign or parentheses.$)$

Nicole's realized gain $($loss$)=$

Nicole's recognized gain $($loss$)=$

Identify the amount and character of Nicole's recognized gain or loss by completing the table below. $($Complete all input fields. Enter a $0$ for any zero balances. Enter a loss with a minus sign

or parentheses.$)$

Recognized loss, ordinary in character $=$

Recognized loss, falls under Sec. $1231=$