Nina, Gino, and Raina form the Loffredo Corporation. Nina transfers $120,000 cash and inventory worth $130,000 with a basis of $90,000. Gino transfers land and building worth $250,000 with a basis of $120,000. Raina transfers legal and accounting services to incorporate worth $50,000. Loffredo issues its 500 shares as follows: 250 shares to Nina, 200 shares to Gino, and 50 shares to Raina. In addition, Gino receives $50,000 cash from Loffredo. How much gain (if any) do Nina and Gino recognize?

		a. Nina recognizes no gain and Gino recognizes $50,000 gain.
		b. Nina recognizes $40,000 gain and Gino recognizes $50,000 gain.
		c. Nina recognizes no gain and Gino recognizes $130,000 gain.
		d. Nina recognizes $40,000 gain and Gino recognizes $130,000 gain.
		e. None of the above.

Nina, Gino, and Raina form Loffredo Corporation. Nina transfers $120,000 cash and inventory worth $130,000 with a basis of $90,000. Gino transfers land and building worth $250,000 with a basis of $120,000. Raina transfers legal and accounting services to incorporate worth $50,000. Loffredo issues its 500 shares as follows: 250 shares to Nina, 200 shares to Gino, and 50 shares to Raina. In addition, Gino receives $50,000 cash from Loffredo. What is Ginos basis in the Loffredo stock?

		a. $170,000.
		b. $120,000.
		c. Zero.
		d. None of the above.

1. Nina, Gino, and Raina form Loffredo Corporation. Nina transfers $120,000 cash and inventory worth $130,000 with a basis of $90,000. Gino transfers land and building worth $250,000 with a basis of $120,000. Raina transfers legal and accounting services to incorporate worth $50,000. Loffredo issues its 500 shares as follows: 250 shares to Nina, 200 shares to Gino, and 50 shares to Raina. In addition, Gino receives $50,000 cash from Loffredo. What is Rainas basis in the Loffredo stock?

   		a. Zero.
   		b. $50,000.
   		c. $100,000.
   		d. None of the above.