1. Allison and Billy decide to form Cart Co., a small golf cart rental business.

Allison contributes 20 golf carts that she purchased earlier this year for $100K, but

worth $180K at the time of incorporation. Billy contributes a warehouse that he

purchased several years ago for $30K that has a FMV of $150K, plus cash of $30K. In

return for their contributions, Allison and Billy each receive 50% of the 200 common

shares of Cart Co.

1. What are the tax consequences to Allison, Billy and Cart Co?
2. What if Allison had purchased the golf carts for $200K?
3. c. What if Billys contribution consisted of services worth $100K and a warehouse worth $100K (basis is still $30K)?
4. d. What if Billy contributed only services valued at $200K?