Scott incorporates his sole proprietorship as Quality Corporation and transfers its assets to Quality in exchange for all 100 shares of Quality stock and two $30,000 interest-bearing notes. The stock has a(n) $120,000 FMV. The notes mature consecutively on the first two anniversaries of the incorporation date. The assets transferred are as follows: (Click the icon to view the asset information.) Read the requirements. Requirement a. What are the amounts and character of Scott's recognized gains or losses? Complete the table to determine the amount and character of Scott's recognized gain or loss for each asset type. If an asset does not have a gain or loss, select "N/A" for the character type. (Round the percentages to the nearest whole percent and dollar amounts to the nearest whole dollar. Use parentheses or a minus sign for losses. Complete all input fields. For amounts with a $0 balance, make sure to enter "0" in the appropriate cell.) Cash Land Equipment 95400 Building 48600 Asset's FMV 3600 32400 Percent of total FMV 2 % 53 % 27 % 18 % 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) Requirement b. What is Scott's basis in the Quality stock and notes? Begin by determining the adjusted basis of the stock. (If an input field is not used in the table leave the field empty; do not select a label or enter a zero.) Adjusted basis of property transferred to the corporation Plus: Minus: Adjusted basis of stock received Scott's basis in the notes is Requirement c. What is Quality's basis in the property received from Scott? (Complete all input fields. For amounts with a $0 balance, make sure to enter "0" in the appropriate cell.) Cash Equipment Building Land Transferor's adjusted basis in property transferred to the corporation Plus: Minus: Transferee corporation's basis in property Activate Windows Adjusted Basis Assets FMV Cash $ 3,600 $ 3,600 Equipment $ 140,000 (75,000) Minus: Accumulated depreciation 65,000 95,400 Building $ 115,000 (65,000) Minus: Accumulated depreciation 50,000 26,400 48,600 32,400 Land $ 145,000 $ 180,000 Total