Moe, Larry and Curly incorporate their existing businesses into the MLC Corp. 

On March 1, Moe transfers property (basis $30,000, fmv $100,000) for 100 shares. 

On April 15, Larry transfers property (basis $100,000 fmv $400,000) for 400 shares. 

On May 20, Curly transfers property (basis $140,000, fmv $300,000) for 300 shares.

Required

a. If these transfers are part of a prearranged plan, who much gain will each shareholder recognize?

b. Assume Moe and Larry transferred their property 4 years ago and Curly transfers her property in the current year. Curly was not part of the prearranged plan. What gain if any will Curly have to recognize on the transfer?

c. Going back to the original facts assume that Curly’s property had a basis of $540,000 instead of $140,000. What changes, if any, might the parties consider?