On June 15, 2017, Jane contributed equipment to FormedCo, Inc., a C-Corporation, in exchange for a 15% common stock interest. Subsequent to the contribution Jane owned 15% of both the vote and value of FormedCo, Inc. At the date of contribution, the equipment contributed by Jane had an adjusted basis of $50,000 and a fair market value of $75,000. No other planned contributions were made on or around June 15, 2017.

a) What amount of gain or loss does Jane realize and recognize on the transfer of the equipment?

b) What basis does Jane take in FormedCo, Inc. stock?

c) What basis does FormedCo, Inc. take in the equipment contributed by Martin