In the current year, Jack, Karen, Latoya, and Marc transfer the following property to Giant Corporation (an existing corporation), which is owned equally by the four transferors.
• Jack transfers land and a building with a $60,000 adjusted basis and a $100,000 FMV for additional Giant stock having an $80,000 FMV and $20,000 of marketable securities having an adjusted basis of $15,000 in Giant’s hands. $10,000 of MACRS straightline depreciation on the building was claimed by Jack prior to the transfer.
• Karen transfers equipment with a $120,000 adjusted basis and a $100,000 FMV for additional Giant stock having an $80,000 FMV and a $20,000 20-year Giant note. $25,000 of MACRS depreciation on the equipment was claimed by Karen prior to the transfer.
• Latoya transfers inventory with a $70,000 adjusted basis and a $100,000 FMV for additional Giant stock having an $80,000 FMV and $20,000 cash.
• Marc transfers land with a $30,000 adjusted basis and a $100,000 FMV, subject to a $40,000 mortgage, which Giant assumes, for additional Giant stock having a $60,000 FMV.
a. What amount and character of gain or loss does Jack recognize? What is Jack’s basis in the Giant stock and the marketable securities? What is Giant’s basis in the land and building?
b. What amount and character of gain or loss does Karen recognize? What is Karen’s basis in the Giant stock and note? What is Giant’s basis in the equipment?
c. What amount and character of gain or loss does Latoya recognize? What is Latoya’s basis in the Giant stock? What is Giant’s basis in the inventory?
d. What amount and character of gain or loss does Marc recognize? What is Marc’s basis in the Giant stock? What is Giant’s basis in the land?

e. What amount and character of gain or loss does Giant recognize on the distribution of its stock, note, and other property to its shareholders?