For each of the following corporate formations, (1) enter the amount of gain or loss that will be recognized by the shareholders as a whole, and (2) enter the corporation's basis in the property after the transfer. Enter all amounts as positive numbers. For each item, enter the appropriate amounts in the associated cells. If the amount is zero, enter a zero Corporate Formation Gain or Loss Basis 12 12 1. David transferred equipment worth $45,000 and a basis to him of $36,000 to Heat, Inc. Heat also assumed a $60,000 loan held for business purposes related to the equipment. In exchange, David received 90% of the company's stock and 25,000 cash. 123 123 2. John and Kelly started Back Stop, Inc, in 2018. Kelly transferred a building with a basis of $120,000 and a FMV of $150,000 for 60% of the stock. ohn agreed to operate the company on a day-to-day basis in exchange for his stock. 123 123 3. Evan transferred land with a FMV of $1.9 million for 100% of the shares of his newly formed corporation. Evan's basis in the land was $2.1 million. 123 123 4. Joaquin and Rafael joineda corporation when Joaquin transferred computers that had a FMV of $5,000 and an adjusted basis of $2,500 and Rafael transferred equipment with a $20,000 FMV and an adjusted basis to him of $18,000. In return, Joaquin received 20% of all the stock and $1,000 cash. Rafael received 80% of all of the corporation's outstanding stock and $4,000 cash. 122 123 5. Melvin incorporated his sole proprietorship in 2018. He transferred inventory with a $93,000 basis and $112,000 FMV, and the corporation assumed an $87,000 loan held against the inventory. The loan was taken out 2 weeks before the transfer, 6 months after the inventory was purchased because Melvin knew it could provide a tax benefit. For each of the following corporate formations, (1) enter the amount of gain or loss that will be recognized by the shareholders as a whole, and (2) enter the corporation's basis in the property after the transfer. Enter all amounts as positive numbers. For each item, enter the appropriate amounts in the associated cells. If the amount is zero, enter a zero Corporate Formation Gain or Loss Basis 12 12 1. David transferred equipment worth $45,000 and a basis to him of $36,000 to Heat, Inc. Heat also assumed a $60,000 loan held for business purposes related to the equipment. In exchange, David received 90% of the company's stock and 25,000 cash. 123 123 2. John and Kelly started Back Stop, Inc, in 2018. Kelly transferred a building with a basis of $120,000 and a FMV of $150,000 for 60% of the stock. ohn agreed to operate the company on a day-to-day basis in exchange for his stock. 123 123 3. Evan transferred land with a FMV of $1.9 million for 100% of the shares of his newly formed corporation. Evan's basis in the land was $2.1 million. 123 123 4. Joaquin and Rafael joineda corporation when Joaquin transferred computers that had a FMV of $5,000 and an adjusted basis of $2,500 and Rafael transferred equipment with a $20,000 FMV and an adjusted basis to him of $18,000. In return, Joaquin received 20% of all the stock and $1,000 cash. Rafael received 80% of all of the corporation's outstanding stock and $4,000 cash. 122 123 5. Melvin incorporated his sole proprietorship in 2018. He transferred inventory with a $93,000 basis and $112,000 FMV, and the corporation assumed an $87,000 loan held against the inventory. The loan was taken out 2 weeks before the transfer, 6 months after the inventory was purchased because Melvin knew it could provide a tax benefit