Transfer of Depreciable Property. Nora transfers to Needle Corporation depreciable machinery originally costing $18,000 and now having a $15,000 adjusted...

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Transfer of Depreciable Property. Nora transfers to Needle Corporation depreciable machinery originally costing $18,000 and now having a $15,000 adjusted basis. In exchange, Nora receives all 100 shares of Needle stock having an $18,000 FMV and a three-year Needle note having a $4,000 FMV. a. What are the amount and character of Nora’s recognized gain or loss? b. What are Nora’s bases in the Needle stock and note? c. What is Needle’s basis in the machinery?
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