Phase 1: 4 Individuals want to form the Big Bad Violin Brewing Company Individual 1 - Gives $100,000 for 1,000 shares Individual 2 - Gives $10,000 in cash and a Brew making equipment - FMV $110,000, Basis $40,000, Debt of $20,000 for 1,000 shares Individual 3 - Gives brewery equipment FMV $120,000, basis $50,000 and receives $20,000 in cash from the corporation plus 1,000 shares of stock. Individual 4 - Give Warehouse FMV $200,000, basis $70,000, Debt $100,000 What are the tax effects to the individual shareholders and corporation? Code Sections