John, Paul, George and Ringo form Scarabs, Inc. They contribute and receive the following: Shared Received Boot Shareholder John Paul Contributed Cash Property A Property B Cash FMV AB Debt $400,000 $400,000 $430,000 $250,000 $630,000 $180,000 $230,000 325000 325000 ? ? 400 400 $30,000 400 400 George Ringo Services 1. What are the tax consequences to John? (4 points) 2. What are the tax consequences to Paul? (4 points) 3. What are the tax consequences to George? (4 points) 4. What are the tax consequences to Ringo? (4 points) 5. What basis will John take in his stock? (4 points) 6. What basis will Paul take in his stock? (4 points) 2 7. What basis will George take in his stock? (4 points) 8. What basis will Ringo take in his stock? (4 points) 9. What basis will the corporation take in Property A? (4 points) 10. What basis will the corporation take in Property B? (4 points)