4) In 2016, Dick, Evan and Fran form Triton Corporation. Dick contributes land (a capital asset) having a $50,000 FMV in exchange for 50 shares of Triton stock. He purchased the land in 2014 for $60,000. Evan contributes machinery (Sec. 1231 property purchased in 2009) having a $45,000 adjusted basis and a $30,000 FMV in exchange for 30 shares of Triton stock. Fran contributes services worth $20,000 in exchange for 20 shares of Triton stock.

a. What is the amount of Dicks recognized gain or loss?

b. What is Dicks basis in his Triton shares?

c. What is the amount of Evans recognized gain or loss?

d. What is Evans basis in his Triton shares?

e. How much income, if any, does Fran recognize?

f. What is Frans basis in her Triton shares?

g. What is Tritons basis in the land and the machinery? How does Triton treat the amount paid to Fran for her services.