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Question: Noreen transfers to Spindle Corporation depreciable machinery originally costing $17,000 and now having a $12,000 adjusted basis. In? exchange, Noreen receives all 350 shares of Spindle stock having an $19,000 FMV and a? three-year Spindle note having a $6,000 FMV.
Requirements: a. What are the amount and character of Noreen's recognized gain or loss?
b. What are Noreen's bases in the Spindle stock and note?
c. What is Spindle's basis in the machinery?
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