John transfers land with a tax basis of $5,000 and a fair market value of $6,000 to Pine Corporation in exchange for stock with a fair market value of $3,000 and $2,000 (cash) in a transaction that qualifies for deferral under section 351. The corporation assumed a liability of $1,000 on the land transferred.
Compute the following:
1. John's Amount Realized
2. John's Adjusted Tax Basis
3. John's Gain (Loss) Realized
4. John's Gain (loss) Recognized
5. John's Tax Basis of Stock Received
6. Corporation's Basis of Land Received