Your clients, Mickey, Mickayla, and Taylor (MMT), are starting a new business. As a starting contribution, Mickey is contributing $200,000 in exchange for a 40% ownership interest, Mickayla is contributing a building with a value of $200,000 and a tax basis of $150,000 for a 40% ownership interest, and Taylor is contributing legal services for a 20% ownership interest. What amount of gain is each owner required to recognize under each of the following alternative situations?

A: MMT is formed as a C corporation. Alternative

B: MMT is formed as an S corporation. Alternative

C: MMT is formed as an LLC.

Write a memo that addresses each of the three alternatives for MMT.