Part II $-$ Transfer of Assets to a Corporation $(35$ points$)$

On January $1,2024,$ Reed, Susan, John, and Benjamin formed the Baxter Corporation.

Reed received $180$ shares of Baxter Corporation stock in exchange for land worth

$$405,000.$ The land was subject to a $$135,000$ mortgage loan, which the corporation

assumed. Reed's basis in the land was $$105,000.$

Susan received $100$ shares of Baxter stock in exchange for inventory valued at $$150,000$

with a basis of $$120,000.$ John received $80$ shares of stock and a $$30,000$ promissory note

from the corporation in exchange for equipment worth $$150,000$ with a basis of $$60,000.$

Benjamin received $40$ shares of stock in exchange for cash of $$15,000$ and legal services

worth $$45,000.$ Benjamin provided the first $$17,000$ worth of legal services for the

formation of the corporation. The corporation incurred no other costs related to its

formation. The other $$28,000$ worth of services provided by Benjamin was for normal

business operations. The corporation began business on January $1,2024.$

a$.$ Determine the gain or loss realized by Reed on the transfer.

b$.$ Determine the gain or loss recognized by Reed on the transfer.

c$.$ Compute the basis of the $180$ shares of Baxter Corporation received by Reed.

d$.$ What is Baxter Corporation's basis in the land received from Reed?

e$.$ Determine the gain or loss realized by Susan on the transfer.

f$.$ Determine the gain or loss recognized by Susan on the transfer.

g$.$ Compute the basis of the $100$ shares of Baxter Corporation received by Susan.

h$.$ Compute Baxter Corporation's basis in the inventory received from Susan.

i$.$ Determine the gain or loss realized by John on the transfer.

j$.$ Determine the gain or loss recognized by John on the transfer.

k$.$ Compute the basis of the $80$ shares of Baxter Corporation received by John.

Compute the basis of the promissory note received by John.

$m.$ Determine Baxter Corporation's basis in the equipment received.

n$.$ How much income is recognized by Benjamin on the transfer?

o$.$ Compute the basis in the $40$ shares of Baxter Corporation received by Benjamin.

p$.$ How much can Baxter Corporation deduct in $2024$ for the legal services provided

by Benjamin?