4) Paco, Tony, and Chen form BlackAcre Corporation with the following consideration. (20 points) Adj. Basis FMV From Paco Cash $120,000 $120,000 Inventory 90,000 130,000 From Tony- Land and building 120,000 250,000 From Chen Legal and accounting services to incorporate -0- 50,000 BlackAcre issues its 500 shares of stock as follows: 250 to Paco, 200 to Tony, and 50 to Chen. In addition, Tony gets $50,000 in cash. BlackAcre issues its 500 shares of stock as follows: 250 to Paco, 200 to Tony, and 50 to Chen. In addition, Tony gets $50,000 in cash. a. Does Paco, Tony, or Chen recognize gain (or income)? b. What basis does Tony have in the BlackAcre stock? Calculate BlackAcre Corporation's basis in the: (1) inventory, (2) the land C. and building. d. What basis does Chen have in the BlackAcre stock? 4) Paco, Tony, and Chen form BlackAcre Corporation with the following consideration. (20 points) Adj. Basis FMV From Paco Cash $120,000 $120,000 Inventory 90,000 130,000 From Tony- Land and building 120,000 250,000 From Chen Legal and accounting services to incorporate -0- 50,000 BlackAcre issues its 500 shares of stock as follows: 250 to Paco, 200 to Tony, and 50 to Chen. In addition, Tony gets $50,000 in cash. BlackAcre issues its 500 shares of stock as follows: 250 to Paco, 200 to Tony, and 50 to Chen. In addition, Tony gets $50,000 in cash. a. Does Paco, Tony, or Chen recognize gain (or income)? b. What basis does Tony have in the BlackAcre stock? Calculate BlackAcre Corporation's basis in the: (1) inventory, (2) the land C. and building. d. What basis does Chen have in the BlackAcre stock