5. How much, if any, gain does Jack realize in the exchange? v

6. How much, if any, does Jack recognize in the exchange?

7. What (how much) is Kacks basis in the equipment received the exchange

8. When does Jacks holding period for the equipment received begin?

9. What (how much) is Phils basis in the rquipment he received in the exchange?

In the current year (i.e., 2022), Phil transfers his equipment (cost $100,COO,AB $20,000 ), which Phil purchased three years ago and which he uses in his business of making cheap sunglasses, to his friend Jack, in exchange for Jack's 100 shares of common stock in GaltCorp (cost $100,000,AB$100,000, FMV \$60,000) and Jack's similar (like-kind) equipment (cost $30,000,AB$8,000, FMV $10,000 ). Jack's 100 shares constitute 100% of the voting shares of GaltCorp and there are no other classes of stock. Jack purchased his GaltCorp shares nine months ago. Jack purchased his equipment two years ago and has always used it in his business. Jack holds the GaltCorp stock as an investment. Phil immediately places his new equipment in service in his business. Jack will use Phil's equipment for personal purposes (but he does not tell Phil). In the current year (i.e., 2022), Phil transfers his equipment (cost $100,COO,AB $20,000 ), which Phil purchased three years ago and which he uses in his business of making cheap sunglasses, to his friend Jack, in exchange for Jack's 100 shares of common stock in GaltCorp (cost $100,000,AB$100,000, FMV \$60,000) and Jack's similar (like-kind) equipment (cost $30,000,AB$8,000, FMV $10,000 ). Jack's 100 shares constitute 100% of the voting shares of GaltCorp and there are no other classes of stock. Jack purchased his GaltCorp shares nine months ago. Jack purchased his equipment two years ago and has always used it in his business. Jack holds the GaltCorp stock as an investment. Phil immediately places his new equipment in service in his business. Jack will use Phil's equipment for personal purposes (but he does not tell Phil)