land (FMV of $2.5 million; AB of $500,000; Mortgage of $300,000 that Jingle assumes) in the North Pole (PRESUME NORTH POLE IS IN U.S.) for 100% of the common stock and for a time was the sole shareholder. 1. What Internal Revenue Code section applies to this transaction? 2. What gain or loss must Kris recognize? 3. What gain or loss must Jingle Corp. recognize? 4. What is Kris's basis in his Jingle stock? 5. Right before the transfer of the land, Kris takes another mortgage on the land for $200,000 to pay off his personal credit cards, does this change his basis in his Jingle stock, and if yes, under what code section? 6. Is there any gain or loss that Kris must recognize because of the $200,000 mortgage? 7. What is his basis in his Jingle stock because of the $200,000 mortgage? 8. What is Jingle's basis in the land because of the $200,000 mortgage? Extra: What is the FMV of Kris's Jingle Stock? On January 1, 2017, 6 elves who qualified Jingle for work opportunity credits started their jobs at Jingle Corp. Each of the self-employees worked 800 hours and each was paid $12,000 by the end of the year