Ivan incorporated his sole proprietorship by transferring inventory, a building, and land to the corporation in return for 100 percent of the corporations stock. The property transferred to the corporation had the following fair market values and adjusted bases:

		FMV		Adjusted Basis
Inventory	$	19,900		$	37,000
Building		82,500			60,500
Land		82,750			50,250
Total	$	185,150		$	147,750

The fair market value of the corporations stock received in the exchange equaled the fair market value of the assets transferred to the corporation by Ivan. The transaction met the requirements to be tax-deferred under 351. (Any answer representing a loss should be entered as a negative number. Leave no answer blank. Enter zero if applicable.)

a.	What amount of gain or loss does Ivan realize on the transfer of the property to his corporation?

Gain or loss realized

b.	What amount of gain or loss does Ivan recognize on the transfer of the property to his corporation?

Gain or loss recognized

c.	What is Ivans basis in the stock he receives in his corporation?

Tax basis

d.	What is the corporations adjusted basis in each of the assets received in the exchange?

	Inventory	Building	Land
Adjusted basis

e.

Would the stock held by Ivan qualify as 1244 stock?

	Yes
	No