Nicoletransfers to TrentonCorporation depreciable machinery originally costing $20,000and now havinga(n)$16,000adjusted basis. Inexchange,Nicolereceives all 325325shares of Trentonstock havinga(n)$20,000FMVand athree-yearTrentonnote havinga(n)$9,000FMV.

Requirements

a.	What are the amount and character of NicoleNicole's recognized gain orloss?
b.	What are NicoleNicole's bases in the TrentonTrenton stock andnote?
c.	What is TrentonTrenton's basis in themachinery?

Requirement a. What are the amount and character of NicoleNicole'srecognized gain orloss?

Nicole realizes a(n)

$

and recognizes a(n)

$

Of the amount recognized,

$

is ordinary in character and

$

is capital in character.

Requirement b. What are NicoleNicole'sbases in the TrentonTrentonstock andnote?

Nicole's basis in the note is

$

and the basis in the stock is

$

.

Requirement c. What is TrentonTrenton'sbasis in themachinery?

Trenton corporation's basis in the machinery is

$