Please answer Fully and show work

25. Harrison and Julia form Iris Corporation. Harrison transfers property (basis of $400,000

and fair market value of $300,000) while Julia transfers land of $150,000 and fan

market value of $280,000) and $20,000 of cash. Each receives 50% of Ins s stock. As a

result of these transfers:

aHarrison has a recognized loss of $l00,000, and Julia has a recognize d gain of

$130,000.

B Neither Harrison nor Julia has any recognized gain or loss.

C Harrison has no recognized loss, but Julia has a recognized gain of $l30,0 00

D Iris Corporation will have a basis in the land of $280,000.

E None of the above.

26. Phillip transfers land worth $300,000, basis of $200,000, to a newly fonded corporation,

Peony Corporation, for all of Peony's stock, worth $250,000, and a 10-year note. The

note was executed by Peony and made payable to Phillip in the amount of $50,000. As a

result of the transfer:

a Phillip does not recognize gain.

B Phillip recognizes gain of $50,000.

C Peony Corporation has a basis of $200,000 in the land.

d. Peony Corporation has a basis of $300,000 in the land.

e. None of the above.