Kelly owns all the stock in Duncan Corp. Her Duncan stock has a basis of $120,000 and a fair market value of $150,000. Duncan Corp. is merged into...

Kelly owns all the stock in Duncan Corp. Her Duncan stock has a basis of $120,000 and a fair market value of $150,000. Duncan Corp. is merged into Munro Cop. Pursuant to the reorganization, Kelly receive Munro preferred stock worth $50,000 and Munro common stock worth $100,000 in exchange for her Duncan Corp. 

a.   What is the amount and character of Kelly's realized and recognized gain

b.   What is Kelly's tax basis for her Munro Corp. preferred stock and common stock