Scott incorporates his sole proprietorship as Superior Corporation and transfers its assets to Superior in exchange for all 100 shares of Superior stock and four $7,500 interest-bearing notes. The stock has a $130,000 FMV. The notes mature consecutively on the first four anniversaries of the incorporation date. The assets transferred are as follows:

Assets		Adjusted Basis	FMV
Cash		14400	14400
Equipment	135000
Minus: Accumulated Depreciation	(65000)	70000	60800
Building	85000
Minus: Accumulated Depreciation	(50000)	35000	51200
Land		25600	33600
Total		45000	160000

Requirement a. What are the amounts and character of tScott'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.

	Cash	Equipment	Building	Land
Assets 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)

Requirement b. What is Scott's basis in the Superior stock and notes? Begin by determining the adjusted basis of the stock.

Adjusted basis of Property transferred to the corporation
Plus	Gain recognized by transferor
Minus	FMV of Boot Received
Adjusted basis of stock

Requirement c. What is Superior's basis in the property received from Scott?

	Cash	Equipment	Building	Land
Transferors adjusted basis in property transferred to the corporation
Pus:
Minus:
Transferee corporations basis in property