Flores, Lamonica, Stabler, Plunkett, & Gannon incorporate their partnership. Each member makes the following contributions to the new corporation, Raiders QB, Inc. (Raiders, Inc.):

A) Flores contributes his real estate (basis of $190,064 and FMV of $340,982) for 8,217 shares of Raiders, Inc. stock, worth $317,000. The corporation also assumed his $65,330 of business debts.

B) Lamonica contributes his copyright (basis of $220,000, FMV of $365,000) for 6,054 shares of Raiders, Inc. stock, worth $371,000, and received $47,000 cash. The corporation also assumed Lamonicas $62,000 business mortgage.

C) Stabler contributes his motor home (basis of $247,923 FMV of $202,000) for 8,312 shares of Raiders, Inc. stock, worth $220,000. The corporation also gave Stabler a brand new 2018 BMW, worth $154,130.

D) Plunkett contributes his law library (basis of $380,000, FMV of $473,000) in exchange for 15,446 shares of Raiders, Inc. stock, worth $373,000, and received $144,000 cash.

E) Gannon contributes his contributes his landscaping services to the corporation (basis of $0, FMV of $68,000), for 3,259 shares of Raiders, Inc. stock, worth $155,000. The corporation also assumed his $87,000 mortgage, which Gannon took in order to pay his past due gambling losses to the MGM Grand Hotel.

What percentage of the corporation is owned by the property contributing shareholders?

exactly 80%

100%

less than 80%

92%

Question 5

5 Points

How much is Plunkett's recognized gain?

$137,000

some other amount

$0

$144,000

Question 6

5 Points

How much is Stabler's basis in his Raiders' stock?

$220,000

$247,923

some other amount

$0

Question 7

5 Points

How much is Flores' basis in his Raiders' stock?

$190,064

$65,330

$124,734

some other amount