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:a. What are the amounts and character of Tom’s recognized gains or losses?b. What is Tom’s basis in the Total stock and notes?c. What is Total’s basis in the property received fromTom?
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Tom incorporates his sole proprietorship as Total Corporation an



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