LO.5 Elton, Neil, Courtney, and Zelma form Ecru Corporation with the following investments:

Basis to Transferor Fair Market Value Number of Shares Issued From Elton—cash $ 200,000 $ 200,000 200 From Neil—inventory 230,000 270,000 260 From Courtney—machinery and equipment 400,000 370,000 350 From Zelma—land and building 1,270,000 1,300,000 1,200 In addition to its stock, Ecru distributes cash as follows: $10,000 to Neil, $20,000 to Courtney, and $100,000 to Zelma. Assume that each share of Ecru stock is worth $1,000.

Regarding these transactions, provide the following information:

a. Neil’s realized and recognized gain (or loss).

b. Neil’s basis in the Ecru stock.

c. Ecru’s basis in the inventory.

d. Courtney’s realized and recognized gain (or loss).

e. Courtney’s basis in the Ecru stock.

f. Ecru’s basis in the machinery and equipment.

g. Zelma’s realized and recognized gain (or loss).

h. Zelma’s basis in the Ecru stock.

i. Ecru’s basis in the land and building.