Naomi transfers to Spindle Corporation depreciable machinery originally costing $15,000 and

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Naomi transfers to Spindle Corporation depreciable machinery originally costing $15,000 and now having a(n) $10,000 adjusted basis. In exchange, Naomi receives all 150 shares of Spindle stock having a(n) $22,000

FMV and a three-year Spindle note having a(n) $8,000 FMV.

Requirements

a.
What are the amount and character of Naomi's recognized gain or loss?
b.
What are Naomi's bases in the Spindlestock and note?
c.
What is Spindle's basis in the machinery?
Requirement a. What are the amount and character of Naomi's recognized gain or loss?

Naomi realizes a(n)
$
 
 
and recognizes a(n)
$
 
 
 

Of the amount recognized,
$
 
is ordinary in character and
$
 
is capital in character.
Requirement b. What are

Naomi's

bases in the

Spindle

stock and note?

Naomi's basis in the note is
$
 
and the basis in the stock is
$
 
.
Requirement c. What is

Spindle's basis in the machinery?

Spindle corporation's basis in the machinery is
$
 
 
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