Kurt owns 2% of the stock of Ute Corporation, which has not elected S-corp tax treatment. Kurt would like to increase his ownership percentage, so strikes a deal with the corporation to transfer to Ute Corporation land with a tax basis of $180,000 (fair market value of $250,000) and cash of $200,000 in return for an additional 10% ownership interest in Ute Corporation. The stock transferred to Kurt has a fair market value (based on other sales during the same week) of $425,000 at the time of the transfer.

(a) What, if any, federal income tax consequences to Kurt arise from this transaction?

(b) What amount of basis is added to Kurts total basis in his stock (outside basis) as a result of this transaction?

(c) What amount of basis (inside basis) does Ute take in both assets as a result of this transaction?