Final answer:
Greg's realized gain on the transaction is $95,000, calculated by subtracting the basis of the property ($5,000) from the value of the note received ($100,000).
Step-by-step explanation:
When Greg transfers property worth $100,000 with a basis of $5,000 to a corporation in exchange for a corporate note with the same value, he is engaging in a business transaction that has tax implications. To calculate the realized gain, we subtract the basis of the property from the value of the note received. Greg's realized gain is the difference between the $100,000 note received and the $5,000 basis, which equals $95,000. This gain represents the increase in value from when Greg originally acquired the property to when he transferred it to the corporation. No loss is realized in this scenario since the value of the property exceeds the basis.