Tom incorporates his sole proprietorship as Total Corporation and transfers its assets to Total in exchange for all 100 shares of Total stock and four $10,000 interest-bearing notes. The stock has a $125,000 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 $ 5,000 $ 5,000

Equipment $130,000

Minus: Accumulated depreciation (70,000) 60,000 90,000

Building $100,000

Minus: Accumulated depreciation (49,000) 51,000 40,000

Land 24,000 30,000

Total $140,000 $165,000

a. What are the amounts and character of Toms recognized gains or losses?

b. What is Toms basis in the Total stock and notes?

c. What is Totals basis in the property received from Tom?

Please use the new tax rules.