1 ACCT 540Corporate Formations ProblemMary and Todd form the MT Corporation, with a transfer of the following properties:Mary$500,000 cashTodd$500,000 FMV property$300,000 tax basisBoth Mary and Todd receive a 50% interest in the corporate stock.Complete the following MaryToddRealized gain________________Recognized gain_________________Basis of Stock__________________MT basis in contributed asset___________________VARIATION 1: In addition to Mary and Todd, Karla joins the corporation at its inception. Karla will provide services to the corporation in exchange for a 25% interest in the stock. That is, she receives 25%of the outstanding shares. Does anything change? Why or why not? CHECK THE BOOK AS A SOURCE VARIATION 2: return to original facts (no Karla). Todds property is valued at $700,000 but is contributed subject to a $200,000 liability. Complete the following MaryToddRealized gain________________Recognized gain_________________Basis of stock__________________MT basis in contributed asset___________________