Determine the tax consequences to each shareholder and the corporation and show supporting computations. Your answers should include:

Gain/loss realized by each shareholder

Gain/loss recognized by each shareholder (consider effect of Rev. Rul. 68-55)

Character of any gain/loss recognized by each shareholder

Shareholders basis in the shares of stock received

Shareholders basis in the bonds received

Corporations basis in the assets received

The tax treatment of any other income, loss, deductions, etc. recognized by the corporation or shareholder.

2. During the current year, Angie and Brad formed AB Corporation to start a landscaping business. a. Assume Angie contributed a pickup truck with a basis of $75,000 and a fair market value of $50,000 in exchange for 100 shares of voting common stock. Brad contributed land with a basis of $15,000 and a fair market value of $50,000 in exchange for 100 shares of voting common stock. b. Assume instead that Angie contributed a pickup truck with a basis of $75,000 and a fair market value of $50,000 and a dump truck with a basis of $30,000 and a fair market value of $50,000 in exchange for 200 shares of voting common stock. Brad contributed land with a basis of $15,000 and a fair market value of $100,000 in exchange for 200 shares of voting common stock.