Al, bob and carl form west corporation and transfer the following items to west:

Transferor item transferor basis FMV shares reveived

Al patent 0 $25000 1000 common

Bob cash $25000 $25000 250 preferred

Carl services 0 $7500 300 common

common stock has voting rights, preferred does not.

a. Is the exchange nontaxable under Sec.351? Explain the tax consequenses of the exchange to Al, Bob, Carl and West.

b. How would your answer to Part a change if Bob instead had received 200 hsares of common stock and 200 shares of preferred stock?

c. How wouldd you answer to Part a change if Carl instead had contributed $800 cash as well as services worth $6700?