Adhering to The Current U.S. Tax Laws, Please solve the following:

On May 1 of the current year, Kim, Vic, Pam, and Joe form Newco Corporation.

*Kim transfers land with a tax basis of $70,000 and a fair market value of $130,000. The land is encumbered with an $80,000 liability, which the corporation assumes as part of the transfer. Kim purchased the land four years ago. Kim received 50 shares of stock in return.

*Vic transfers equipment with a tax basis of $20,000 and a fair market value of $40,000 in exchange for 30 shares of stock and $10,000 in cash from the corporation. Vic purchased the equipment three years ago.

*Joe provides legal services to the corporation worth $10,000 in exchange for 10 shares of stock.

*Pam transfers a personal car to with a tax basis of $25,000 and a fair market value of $15,000 in exchange for 10 shares of stock and $5,000 in cash from the corporation. Pam purchased the car two years ago.

a. What is Kims amount realized?

b. What is your authority for your answer in Question a?

c. What is Kims gain or loss realized?

d. What is Kims gain or loss recognized?

e. What is your authority for your answer in Question d?

f. What is Kims stock basis?

g. What is your authority for your answer in f?

h. What is Vics gain or loss recognized?

i. What is Joes stock basis?

j. What is Pams gain or loss realized?

k. What is Pams gain or loss recognized?

l. What is Pams stock basis?

m. What is Newcos tax basis in the equipment transferred by Vic?