1. Mika and Miles agree to form Charter Away Inc. a small family boat rental business. Mika contributes 20 sailboats purchase for $70,000 but worth $170,000 at the time of incorporation. Miles contributes a small piece of waterfront property and a dock purchased many years ago for $30,000, with a fair market value of $150,000, plus cash of $20,000. In return for the contributions, each receives a 50% of the 200 authorized common shares of Charter Away, Inc. What are the tax consequences to Mika? What are the tax consequences to Miles? What are the tax consequences to Charter Away, Inc? 2. What result(s) if Mika's sailboats were originally purchased for $180,000? 3. What result if Miles' contribution consisted of services worth $70,000 and property worth $100,000 (basis still $30,000)? What if be contributed only services valued at $170,0007 4. What result if Mika made her contribution in exchange for $160,000 worth of stock and a bond valued at $10,000? How would your answer change if Mika's basis in the sailboats contributed has been $180,000? 5. Oberon and Pack agree to establish Oberon Spirits, Inc. ("OSI"), to manufacture and sell fine wines and spirits. At the time of incorporation, two classes of stock ane authorized: 1) voting comumon stock; and 2) 0% nonvoting preferred stock with a redemption feature mandating redemption of the shares at a specified prema 10 years from the date of issue. Oberon contributes land for a winery with a basis of $75,000 and a fair market value of $500,000 Puck contributes a wine cellar already filled with fine wines he has collected over the years. Puck's basis for the wines and cellar was $20,000, and its fair market value at the time of contribution was $500,000 In retar for his contribution, Oberon receives 100 shares of common stock Pack, on the other hand, receives only 50 shares of common stock valued at $250,000 and OST securities bearing 8% interest payable over 10 years, also valued at $250,000 What are the tax consequences to Oberon, Puck, and the corporation