Buckley corporation is merging with mdc corporation in a tax-free reorganization (under section 368). mdc transfers property (basis of $300,000 fair market value of $700,000 and a business liability of $150,000) to buckley in exchange for voting shares in buckley corporation. mdc transfers the buckley shares to its shareholders in exchange for their mdc stock. mdc then liquates. as a result of these transfers: 1) what is the fmv of the stock? 2) what is mdc corporation’s realized gain or loss? 3) what is mdc corporation’s recognized gain or loss? 4) what is buckley corporation’s realized gain or loss? 5) what is buckley corporation’s recognized gain or loss? do you need any additional information?

On january 2, 2016, twilight hospital purchased a $94,800 special radiology scanner from bella inc. the scanner had a useful life of 4 years and was estimated to have no disposal value at the end of its useful life. the straight-line method of depreciation is used on this scanner. annual operating costs with this scanner are $106,000. approximately one year later, the hospital is approached by dyno technology salesperson, jacob cullen, who indicated that purchasing the scanner in 2016 from bella inc. was a mistake. he points out that dyno has a scanner that will save twilight hospital $26,000 a year in operating expenses over its 3-year useful life. jacob notes that the new scanner will cost $111,000 and has the same capabilities as the scanner purchased last year. the hospital agrees that both scanners are of equal quality. the new scanner will have no disposal value. jacob agrees to buy the old scanner from twilight hospital for $40,500. if twilight hospital sells its old scanner on january 2, 2017, compute the gain or loss on the sale. prepare an incremental analysis of twilight hospital.