II. Section 351 Problem A. Gilligan has been operating an island cruise business for several years. His old friend Mary Anne operates a small coffee shop and catering business at the nearby wharf. Both are sole proprietors. They decide to incorporate and form GMA, Inc., which will operate both businesses. It is a good fit as the catering shop has been supplying meals for Gilligan's cruises for years and Gilligan has been referring hungry tourists to Mary Anne's shop as well. Gilligan will contribute the following assets to GMA in exchange for 50 shares of common stock: Mary Anne will contribute the following assets in exchange for i) 50 shares of GMA common stock and ii) a note payable with a FMV of $4,500 : 1. Compute the realized gain of each party from this transaction. 2. Compute any recognized gain by either party. 3. Compute the tax basis of the shares received by each party. II. Section 351 Problem A. Gilligan has been operating an island cruise business for several years. His old friend Mary Anne operates a small coffee shop and catering business at the nearby wharf. Both are sole proprietors. They decide to incorporate and form GMA, Inc., which will operate both businesses. It is a good fit as the catering shop has been supplying meals for Gilligan's cruises for years and Gilligan has been referring hungry tourists to Mary Anne's shop as well. Gilligan will contribute the following assets to GMA in exchange for 50 shares of common stock: Mary Anne will contribute the following assets in exchange for i) 50 shares of GMA common stock and ii) a note payable with a FMV of $4,500 : 1. Compute the realized gain of each party from this transaction. 2. Compute any recognized gain by either party. 3. Compute the tax basis of the shares received by each party