Federal Income Taxation

Addy, Anderson, and Andrew decided to form a corporation together. They name the company XYZ Inc. Addy contributes his office building (purchased 2 years ago at $550k and now worth $600k) and receives 60% of the stock in XYZ Inc. Anderson contributes $100k cash and receives 10% of the stock. Andrew received 30% of the remaining stock for providing his service as the company's CEO. a) Do Addy have to realize the gain he realized on his contribution of the office building to XYZ Inc.? b) Calculate the amount of gain/loss that Addy must realize? c) Calculate the shareholder basis of the stock that Addy received. d) Calculate the corporation basis of the property that the corp. received from Addy. Addy, Anderson, and Andrew decided to form a corporation together. They name the company XYZ Inc. Addy contributes his office building (purchased 2 years ago at $550k and now worth $600k) and receives 60% of the stock in XYZ Inc. Anderson contributes $100k cash and receives 10% of the stock. Andrew received 30% of the remaining stock for providing his service as the company's CEO. a) Do Addy have to realize the gain he realized on his contribution of the office building to XYZ Inc.? b) Calculate the amount of gain/loss that Addy must realize? c) Calculate the shareholder basis of the stock that Addy received. d) Calculate the corporation basis of the property that the corp. received from Addy