Kelly, Tanya, and Barry form The Paint Corporation.

Kelly transfers a building (A/B $40,000, FMV $100,000);

Tanya invests $60,000 cash and performs services worth $15,000.

Barry transfers equipment (A/B $50,000, FMV $25,000) and land (A/B $40,000, FMV $50,000).

They each receive 50 shares in The Paint Corporation, and each share is worth $1,500.

Kelly also receives $10,000 cash from the corporation. The corporation assumes a $15,000 debt that Kelly owes on the building. The $15,000 debt is for tax avoidance.

1. What is Kelly's recognized gain? Kelly's Recognized gain
2. What is Kelly's stock basis? Kelly's Stock Basis 25,000
3. What is the corporation's basis in the building? Corporation basis in Building
4. What is Tanya's stock basis? Taniya's Stock Basis
5. What is the corporation's basis in the equipment? Corporation basis in Equipment