Antoine, Becky, and Colleen form ABC Corporation by contributing the  following items in exchange for stock in ABC Corporation:                                                                                    Adjusted Basis                  Fair Market Value
                                       of property given                of property given            Shares of Stock Received  
Antoine:
    Cash                          $30,000                                              $30,000
    Equipment                 300,000                                                420,000                            4500 shares
Becky:
    Land                           $100,000                                          $480,000                           3000 shares*
    Mortgage                   150,000                                               (150,000)
Colleen:
    Services                         $0                                                    $50,000                             500 shares

 
Additional information:
·        Colleen has a PhD in computer technology and designed their online platform.
·        *Becky received $30,000 of cash in addition to 3,000 shares of ABC Stock.
 
 Questions:


a.       How much gain, loss, or income does Antoine recognize from contributing cash and equipment in exchange for 4500 shares of stock?
 
b.      What is Antoine's basis in his ABC stock?
 
c.      How much gain, loss or income does Becky recognize from contributing her land? (Note: ABC will assume the mortgage).
 
d.      What is Becky's basis in ABC stock?
 
e.      How much gain, loss, or income does Colleen recognize from receiving stock in exchange for services?
 
f.       What is Colleen's basis in ABC Stock?