1. On January 10, 2020, Mary transfers to Green Corporation a machine purchased on March 3, 2017, for $100,000. The machine has a $60,000 adjusted basis and a $110,000 FMV on the transfer date. Mary receives all 100 shares of Green stock, worth $100,000, and a two-year Green note worth $10,000.

1. What are the amount and character of Marys recognized gain or loss?
2. What is Marys basis in the stock and note? When does her holding period begin?
3. What are the amount and character of Greens gain or loss?
4. What is Greens basis in the machine? When does Greens holding period begin