Formation: Mark is a Radiologist and maintains a radiology practice (X-Ray). Jennifer is an information systems specialist and has created a computer program for the administration and operation of a radiology office. The two have decided to come together to create the X-Rays Software Partnership. The for- profit partnership was organized under the state laws on January 7, 2020. Mark and Jennifer each receive 100 common actions from X-Rays by contributing the following assets to the new corporation: Shareholder Property Tax Base Market Value Mark Building $100,000 $275,000 Cash 50,000 50,000 25,000 Mortgage 25,000 Payment (debt) Jennifer 200,000 Computer 20,000 Program License 5,000 80,000 Cash 40,000 35,000 Jennifer 200,000 Computer 20,000 Program License 5,000 80,000 Cash 40,000 35,000 The mortgage promissory note was assumed by X-Rays in the share asset transfer transaction. Mark owed that loan as part of the sale of the building. On the other hand, as part of the transaction, Jennifer received $15,000 in cash in addition to X-Rays' 50 shares in X-rays' share asset transfer transaction. Part 1. Questions: 1. Determine the value of the X-Rays corporation after the transfer of assets in exchange for its shares. 2. Calculate the gain made and recognized by Mark in the forming and transfer of properties to X-Rays. 3. Calculate the gain made and recognized by Jennifer in the forming and transfer of properties to X-Rays. 4. Determine the initial basis for actions received by Mark 5. Determine the initial basis for actions received by Jennifer 6. Determine the initial basis for all assets received by X- Rays Part 2. Refer to the first question. X-Rays finally began operations on January 15, 2020. At the end of its first contribution year, on December 31, 2020, the operation generated a loss of operations of ($500,000) (contributory basis). During the year, the corporation distributed $25,000 to Jennifer and $25,000 to Mark. Questions: 1. As of December 31, 2020, which is the balance of the X-Rays Current Profit and Profit Account, before considering distribution to Jennifer and Mark. 2. As of December 31, 2020, which is the balance of X- Rays' Current Profit and Profit Account, after considering the distribution to Jennifer and Mark 3. As of January 1, 2021, which is the balance of the current and accumulated profit and income account 4. Explain whether it is necessary to adjust the contributory basis of Jennifer and Mark's actions as a result of X-Rays operations and distributions during 2020 Part 3. Refer to Questions 1 and 2. At the end of its second contributory year, on December 31, 2021, X-Rays generated net income after the tax payment of $800,000. During the contributory year, the corporation bought New York State bonds and generated an interest income of $5,000. During the year, the corporation distributed $200,000 to Jennifer and $200,000 to Mark. Questions: 1. As of December 31, 2021, which is the balance of the X-Rays Current Profit and Profit Account, before considering distribution to Jennifer and Mark. 2. As of December 31, 2021, which is the balance of X- Rays' Current Profit and Income Account, after considering the distribution to Jennifer and Mark 3. As of January 1, 2022, which is the balance of the current and accumulated income and profit account 4. Explain whether it is necessary to adjust the contributory basis of Jennifer and Mark's actions as a result of X-Rays operations and distributions during 2021 Formation: Mark is a Radiologist and maintains a radiology practice (X-Ray). Jennifer is an information systems specialist and has created a computer program for the administration and operation of a radiology office. The two have decided to come together to create the X-Rays Software Partnership. The for- profit partnership was organized under the state laws on January 7, 2020. Mark and Jennifer each receive 100 common actions from X-Rays by contributing the following assets to the new corporation: Shareholder Property Tax Base Market Value Mark Building $100,000 $275,000 Cash 50,000 50,000 25,000 Mortgage 25,000 Payment (debt) Jennifer 200,000 Computer 20,000 Program License 5,000 80,000 Cash 40,000 35,000 Jennifer 200,000 Computer 20,000 Program License 5,000 80,000 Cash 40,000 35,000 The mortgage promissory note was assumed by X-Rays in the share asset transfer transaction. Mark owed that loan as part of the sale of the building. On the other hand, as part of the transaction, Jennifer received $15,000 in cash in addition to X-Rays' 50 shares in X-rays' share asset transfer transaction. Part 1. Questions: 1. Determine the value of the X-Rays corporation after the transfer of assets in exchange for its shares. 2. Calculate the gain made and recognized by Mark in the forming and transfer of properties to X-Rays. 3. Calculate the gain made and recognized by Jennifer in the forming and transfer of properties to X-Rays. 4. Determine the initial basis for actions received by Mark 5. Determine the initial basis for actions received by Jennifer 6. Determine the initial basis for all assets received by X- Rays Part 2. Refer to the first question. X-Rays finally began operations on January 15, 2020. At the end of its first contribution year, on December 31, 2020, the operation generated a loss of operations of ($500,000) (contributory basis). During the year, the corporation distributed $25,000 to Jennifer and $25,000 to Mark. Questions: 1. As of December 31, 2020, which is the balance of the X-Rays Current Profit and Profit Account, before considering distribution to Jennifer and Mark. 2. As of December 31, 2020, which is the balance of X- Rays' Current Profit and Profit Account, after considering the distribution to Jennifer and Mark 3. As of January 1, 2021, which is the balance of the current and accumulated profit and income account 4. Explain whether it is necessary to adjust the contributory basis of Jennifer and Mark's actions as a result of X-Rays operations and distributions during 2020 Part 3. Refer to Questions 1 and 2. At the end of its second contributory year, on December 31, 2021, X-Rays generated net income after the tax payment of $800,000. During the contributory year, the corporation bought New York State bonds and generated an interest income of $5,000. During the year, the corporation distributed $200,000 to Jennifer and $200,000 to Mark. Questions: 1. As of December 31, 2021, which is the balance of the X-Rays Current Profit and Profit Account, before considering distribution to Jennifer and Mark. 2. As of December 31, 2021, which is the balance of X- Rays' Current Profit and Income Account, after considering the distribution to Jennifer and Mark 3. As of January 1, 2022, which is the balance of the current and accumulated income and profit account 4. Explain whether it is necessary to adjust the contributory basis of Jennifer and Mark's actions as a result of X-Rays operations and distributions during 2021