[total points 20] In an arms length exchange, Sharp exchanges some land with a cost basis of $6,000 and a value of $9,000 with Dull for some non-publicly traded stock which Dull owns and in which Dull has a basis of $8,000 and is worth $10,000 at the time of the exchange.

What is Sharp and Dulls gains on the exchange and their respective cost bases in the assets they receive:

Cost Basis of New Asset

Sharp

Dull

What results in (a), above, if the value of Dulls stock cannot be determined with any reasonable certainty?

Cost Basis of New Asset

Sharp

Dull