answer 2,3,4,5

2E - C-Corp. Formation Example The following individuals formed Newby Corporation by transferring the following: Number of Shares Received (Value per share $1.000) Basis to Fair Market Erom Transferor Transferor Value Adam Cash $30,000 $30,000 70 Equipment Brittany Land 30.000 40,000 60,000 50,000 30 Mortgage on Land (assumed by Newby Corp.) Chad Building 30,000 30,000 50,000 45,000 40 plus $10,000 cash Dawn Administrative services for the 6,000 Corp. 1. How much gain or loss is recognized by Adam? What basis will Newby Corporation have in the equipment? 2. How much gain or loss is recognized by Britany? 3. 4. What basis will Newby Corporation have in the Land? 5. What basis does Brittany have in the stock