Danielle, Colin, Farrah, and Earl form Magnolia Inc. (a C corporation) by transferring business assets and services as follows: 1 The mortgage is $60,000 and was obtained to purchase the land and the building. Danielle transfers the land and building to the corporation, and the corporation assumes the liability. 2 Hint: the fair market value of the stock is $100 per share. 3 All assets were held for three years prior to the formation of Magnolia. 4 The building was originally purchased for $50,000. [part 1] What amount and character of gain (loss) is recognized by Danielle? [ 4 points] [part 2] What is Danielle's basis and holding period in the stock received? [ 3 points] [part 3] What amount of gain (loss) is recognized by Farrah? [2 points] [part 4] What is Farrah's basis in the stock received? [2 points] (assume no election is made to reflect any deferred loss in the basis of property contributed to Magnolia) [part 5] What is Magnolia's basis and holding period in the land contributed by Danielle? [ 3 points] [part 6] What is Magnolia's basis in the truck contributed by Farrah? [ 2 points] (again, assume no election is made to reflect any deferred loss in the basis of property contributed to Magnolia)