Consideration Transferred
				FMV	Adj. Basis to Transferor	# of Shares
From Alice:
Legal and accounting services to form the corporation	30,000	$ -	10
From Brett:
Machine ($42,000 of depreciation taken in prior years)	300,000	335,000	100
From Casey:
Cash				85,000	85,000
Accounts Receivable			55,000	$ -	40
From Donald:
Equipment ($31,000 of depreciation taken in prior years)	380,000	180,000
Mortgage Liability on the Equipment		230,000	230,000	50
* Casey also receives $20,000 in marketable securities in addition to the 40 shares.
** ABCD Corporation assumes the mortgage liability transferred by Donald

Required a. How much is the fair market value of each share of ABCD Corporation stock issued to the shareholders? b. How much, if any, is Alice's recognized gain or loss? What is the character of the gain or loss? c. How much is Alice's basis in the corporation's stock? d. How much is the corporation's basis in the services that Alice contributes? e. How much gain or loss must Brett recognize? What is the character of the gain or loss? f. How much is Brett's basis in the corporation's stock? g. How much is the corporation's basis in the machine? h. What election could be made for Brett's stock basis since the property he contributes has a built-in loss? How much is Brett's basis in the corporation's stock if he makes this election? i. How much is the corporation's basis in the machine if Brett makes the election noted in part (h) above? j. How much is Casey's recognized gain or loss? What is the character of the gain or loss? k. How much is Casey's basis in the corporation's stock? l. How much is the corporation's basis in the cash? m. How much is the corporation's basis in the accounts receivable? n. How much, if any, is Donald's recognized gain or loss? What is the character of the gain or loss? o. How much is Donald's basis in the corporation's stock? p How much is the corporation's basis in the equipment?