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Jestie and Woody formed Toy Story Corporation on January 2. Jestie contributed cash of $500,000 in retam for 50 percent of the corporatie's stock Woody
Jestie and Woody formed Toy Story Corporation on January 2. Jestie contributed cash of $500,000 in retam for 50 percent of the corporatie's stock Woody contributed a building and land with the following fair market values and tax adjusted bases in return for 50 percent of the corporation's stock FMV 220,000 Building Land Adjusted batis 150,000 150,000 330,000 Total 5 550,000 5 300,000 To equalize the exchange, Toy Story Corporation paid Jessie $50,000 in addition to her stock valued at $500,000 a. What amount of gain or loss does Jessie realize on the formation of the corporation? b. What amount of gain or loss, if any, does she recognize? c. What is Jessie's tax basis in the stock she receives in return for her contribution of property to the corporation? d. What adjusted basis does Toy Story Corporation take in the land and building received from Jessie
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