Jeff will incorporate his bike shop:

FMV TAX BASIS BOOK BASIS

CASH 200,000 200,000 200,000

FFE 125,000 75,000 85,000

INVENTORY 250,000 115,000 115,000

BUILDING 500,000 300,000 250,000

Liabilities (Accounts Payable ) : $80,000

a. What is his realized gain/ loss?

b. What are his recognized gain/loss without section 351?

c. What are his recognized gain/ loss with section 351?