Kenisha and Shawna form the equal KS LLC, with a cash contribution of $404,000 from Kenisha and a property contribution (adjusted basis of $424,200, fair market value of $404,000) from Shawna.

If an amount is zero, enter "0".

a. How much gain or loss, if any, does Shawna realize on the transfer? Does Shawna recognize any gain or loss? If so, how much? Shawna has realized loss of $___________, of which $______________ is recognized.

b. What tax basis does the LLC take in the property transferred by Shawna?

$________________