Answer Happy

Ron and Hermione formed Wizard Corporation on January 2. Ron
contributed cash of $205,000 in return for 50 percent of the
corporation’s stock. Hermione contributed a building and land with
the following fair market values and adjusted tax bases in return
for 50 percent of the corporation’s stock: (Leave no
answer blank. Enter zero if applicable. Negative amount should be
indicated by a minus sign.)
Assume Hermione’s adjusted tax basis in the land was
$205,000.

f. What amount of gain or loss does
Hermione realize on the formation of the
corporation? What amount, if any, does
she recognize?
Assume Hermione’s adjusted tax basis in the land was
$205,000.

g. What adjusted tax basis does Wizard
Corporation take in the land and building received from
Hermione?
Assume Hermione’s adjusted tax basis in the land was
$256,250.

h. What amount of gain or loss does
Hermione realize on the formation of the
corporation? What amount, if any, does
she recognize
???
Assume Hermione’s adjusted tax basis in the land was
$256,250.

i. What adjusted tax basis does Wizard
Corporation take in the land and building received from
Hermione?