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3 of 10 Required information [The following information applies to the questions displayed below) Ron and Hermione formed Wizard Corporation on January 2 Ron contributed

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3 of 10 Required information [The following information applies to the questions displayed below) Ron and Hermione formed Wizard Corporation on January 2 Ron contributed cash of $230,000 in return for 50 percent of the corporation's stock. Hermione contributed a building and land with the following fair market values and adjusted tax bases in return for 50 percent of the corporation's stock: (Leave no answer blank. Enter zero if applicable. Negative amount should be indicated by a minus sign.) Adjusted Tax FMV Basis Building $ 86,250 $ 23,000 Land 201, 250 92,000 Total $ 287,500 $ 115,000 To equalize the exchange, Wizard Corporation paid Hermione $57,500 in addition to her stock c. What amount of gain or loss does Hermione realize on the formation of the corporation? What amount, if any, does she recognize? Answer is complete but not entirely correct. Gain or loss realized s 172,500 Gain or loss recognized 172,500 S 9 Port 6 of 10 0.36 points Required information [The following information applies to the questions displayed below) Ron and Hermione formed Wizard Corporation on January 2 Ron contributed cash of $230,000 in return for 50 percent of the corporation's stock. Hermione contributed a building and land with the following fair market values and adjusted tax bases in return for 50 percent of the corporation's stock: (Leave no answer blank. Enter zero if applicable. Negative amount should be indicated by a minus sign.) Adjusted Tax Basis Building $ 86,250 $ 23,000 Land 201,250 92,000 Total $ 287,500 $ 115,000 To equalize the exchange. Wizard Corporation paid Hermione $57,500 in addition to her stock FMV Assume Hermione's adjusted tax basis in the land was $230,000 1. What amount of gain or loss does Hermione realize on the formation of the corporation? What amount, if any, does she recognize? Answer is complete but not entirely correct. Gain or loss realized $ 34,600 Gain or loss recognized $ 115,000 ! Required information The following information applies to the questions displayed below] Ron and Hermione formed Wizard Corporation on January 2 Ron contributed cash of $230,000 in return for 50 percent of the corporation's stock Hermione contributed a building and land with the following fair market values and adjusted tax bases in return for 50 percent of the corporation's stock: (Leave no answer blank. Enter zero if applicable. Negative amount should be indicated by a minus sign.) Building Land FMV $ 86,250 201, 250 $ 287,500 Adjusted Tax Basis $ 23,000 92,000 $ 115,000 Total To equalize the exchange, Wizard Corporation paid Hermione $57,500 in addition to her stock Assume Hermione's adjusted tax basis in the land was $230,000. g. What adjusted tax basis does Wizard Corporation take in the land and building received from Hermione? Answer is complete but not entirely correct. Land Building Adjusted tax basis $ 39,550 $ 399,375 12 ! Part 9 of 10 Required information [The following information applies to the questions displayed below.] Ron and Hermione formed Wizard Corporation on January 2. Ron contributed cash of $230,000 in return for 50 percent of the corporation's stock. Hermione contributed a building and land with the following fair market values and adjusted tax bases in return for 50 percent of the corporation's stock (Leave no answer blank. Enter zero if applicable. Negative amount should be indicated by a minus sign.) 0.36 points Building Land Total FMV $ 86,250 201,250 $ 287,500 Adjusted Tax Basis $ 23,800 92,000 $ 115,000 To equalize the exchange, Wizard Corporation paid Hermione $57,500 in addition to her stock Assume Hermione's adjusted tax basis in the land was $287,500, 1. What adjusted tax basis does Wizard Corporation take in the land and building received from Hermione? Answer is complete but not entirely correct. Land Building Adjusted tax basis 0 $ 0

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