Michael and Ryan formed Michael Scott Paper Co. on January 2, see announcement here Michael Scott Paper Company . Michael contributed cash of $200,000 in return for 50 percent of the corporations stock. Ryan contributed a building and land with the following fair market value and adjusted bases in return for 50 percent of the corporations stock. FMV Adjusted Basis Building $ 75,000 $ 55,000 Land 175,000. 80,000 Total $ 250,000. $ 135,000

To equalize the exchange, Michael Scott Paper Co. paid Ryan $50,000 in addition to his stock.

Assume Ryans adjusted basis in the land was $200,000.

f. What amount of gain or loss does Ryan realize on the formation of the corporation? What amount, if any, does he recognize? g. What adjusted basis does Michael Scott Paper Co. take in the land and building received from Ryan?

Assume Ryans adjusted basis in the land was $250,000.

h. What amount of gain or loss does Ryan realize on the formation of the corporation? What amount, if any, does he recognize? i. What adjusted basis does Michael Scott Paper Co. take in the land and building received from Ryan?