l. During discussions relating to the formation of Kingfisher, Seth mentions that he may be interested in either (1) just selling all of his inventory in the current year for its fair market value of $96,000 or (2) proceeding with his involvement in Kingfisher's formation as shown above but followed by a sale of his stock five years later for $90,000. What would be the tax cost of these alternative plans, stated in present value terms?

Assume a discount rate of 6%. The present value factors at 6% for year 1 is 1.000 and for 0.7473 for year 5.

Seth's tax cost associated with the current sale of inventory for $96,000 is $____

Seth's tax cost associated with the current receipt of 30 Kingfisher shares and $6,000 cash and the subsequent sale of 30 Kingfisher shares for $90,000 in five years is $ _____