These are the correct answers, but please explain thoroughly the work on how to do each section please. Thank you Barbara transfers to Moore Corporation $10,000 cash and machinery having a $15.000 basis and a $35.000 FMV in exchange for 50 shares of Moore stock. The machinery was used in Barbara's business, originally cost Barbara$50,000, and is subject to a $28,000 liability, which Moore assumes. Sam exchanges $17,000 cash for the remaining 50 shares of Moore stock.Read the requirementsAsleDiTaRequirement a. What are the amount and character of Barbara's recognized gain or loss?Barbara realizes a(n)$ 20,000 gain and recognizesordinary income of $3,000,Requirement b. What is Barbara's basis in the Moore stock?Barbara's basis in the Moore stock iszero.Requirement c. What is Moore's basis in the machinery?Moore's basis in the machinery is$ 18,000Requirement d. What are the amount and character of Sam's recognized gain or loss?Sam recognizesno gain or los.Requirement e. What is Sam's basis in the Moore stock?Sam's basis in the Moore stock is$ 17,000Requirement f. When do Barbara and Sam's holding periods for their stock begin?Start of holding periodBarbara's stockhas a split holding period because she received the stock in exchange for Sec. 1231 property and cash.Sam's stockthe day after the exchange date.Requirement g. How would your answers to Parts a through f change if Sam received $17,000 of Moore stock for legal services (instead of cash)?Help me solve thisCalculatorAsk my instructorTry again Barbara transfers to Moore Corporation $10,000 cash and machinery having a $15,000 basis and a $35,000 FMV in exchange for 50 shares of Moore stock. The machinery was used in Barbara's business, originally cost Barbara$50,000, and is subject to a $28,000 liability, which Moore assumes. Sam exchanges $17,000 cash for the remaining 50 shares of Moore stock.Read the requirements.Sam's basis in the Moore stock is$ 17,000Requirement f. When do Barbara and Sam's holding periods for their stock begin?Start of holding periodBarbara's stockhas a split holding period because she received the stock in exchange for Sec. 1231 property and cash.Sam's stockthe day after the exchange date.Requirement g. How would your answers to Parts a through f change if Sam received $17,000 of Moore stock for legal services (instead of cash)?a. Barbara recognizesordinary income of $20,000.b.Barbara's basis in the Moore stock is$ 17,000c. Moore's basis in the machinery is$ 35,000Sam realizes a(n)$ 17,000 gainand recognizes ordinary income of $17,000.d.$ 17,000e. Sam's basis in the Moore stock isf. When do Barbara and Sam's holding periods for their stock begin?Sam's holding period for his stock wouldstart on the day after the exchange date.Barbara's stockwouldhave a holding period that starts on the day after the exchange date.The transactiondid not qualify under Sec. 351, thereby making Sec. 1223(1) inapplicable.Help me solve thisCalculatorAsk my instructorTry again

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