A. What amount of gain or loss does Ron realize on the formation of the corporation? What amount, if any, does he recognize? What is Rons tax basis in the stock he receives in return for his contribution of property to the corporation? (Leave no answer blank. Enter zero if applicable. Negative amount should be indicated by a minus sign.)

Ron's Gain/Loss Realized:

Ron's Gain/Loss Recognized:

Ron's Tax base:

B. What amount of gain or loss does Hermione realize on the formation of the corporation? What amount, if any, does she recognize? What is Hermiones tax basis in the stock she receives in return for her contribution of property to the corporation? (Leave no answer blank. Enter zero if applicable. Negative amount should be indicated by a minus sign.)

Hermione's Gain/Loss Realized:

Hermione's Gain/Loss Recognized:

Hermione's Tax base:

C. What adjusted basis does Wizard Corporation take in the land and building received from Hermione? (Leave no answer blank. Enter zero if applicable. Negative amount should be indicated by a minus sign.)

Adjusted basis Land:

Adjusted basis building:

Required information [The following information applies to the questions displayed below.] Ron and Hermione formed Wizard Corporation on January 2. Ron contributed cash of $380,000 in return for 50 percent of the corporation's stock. Hermione contributed a building and land with the following fair market values and adjusted bases in return for 50 percent of the corporation's stock: x- Adjusted Basis FMV Building $216,000 $54,000 Land 324,000 216,000 $540,000 $270,000 Total To equalize the exchange, Wizard Corporation paid Hermione $160,000 in addition to her stock. Required information [The following information applies to the questions displayed below.] Ron and Hermione formed Wizard Corporation on January 2. Ron contributed cash of $380,000 in return for 50 percent of the corporation's stock. Hermione contributed a building and land with the following fair market values and adjusted bases in return for 50 percent of the corporation's stock: x- Adjusted Basis FMV Building $216,000 $54,000 Land 324,000 216,000 $540,000 $270,000 Total To equalize the exchange, Wizard Corporation paid Hermione $160,000 in addition to her stock