Mara and Bob form Robin Corporation. Mara transfers property worth $307,500 (basis of $107,625) for 70 shares in Robin Corporation. Bob receives 30 shares for property worth $123,000 (basis of $24,600) and for legal services (worth $12,300) in organizing the corporation.

If there is no gain or loss, enter "0" for the amount.

a. What gain or income, if any, will the parties recognize on the transfer?

Mara recognizes NO GAIN OR LOSS of $0. of Bob recognizes A CAPITAL GAIN ( <--This is Wrong I think) of $12,300.

b. What basis do Mara and Bob have in the Robin Corporation stock?

Mara has a basis of $107,625, and Bob has a basis of $36,900 in the stock.

c. What is Robin Corporation's basis in the property and services it received from Mara and Bob?

Robin Corporation has a basis of $107,625 in the property Mara transferred and a basis of $24,600 in the property Bob transferred.

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