Please answer Fully and show work and citations

27.

Pamela and Amanda form Pansy Corporation. Pamela transfers land (basis of $40,000

and fair market value of $90,000) for 50 shares plus $10,000 cash. Amanda transfers

$80,000 cash for 50 shares in Pansy Corporation.

Pamela's basis in the Pansy Corporation stock is $40,000.

Pansy Corporation's basis in the land is $40,000.

C. Pansy Corporation's basis in the land is $90,000.

d. Pamela recognizes a gain on the transfer of $50,000.

e. None of the above.

28.

order to induce Begonia Corporation to build a new manufacturing facility in Bangor,

are, the city donates land (far market value of $150,000) and cash of $50,000 to the

0orporat1on. Within several months of the donation, Begonia Corporation spends

$250,000 (which includes the $50,000 received from Oxford) on the construction of a

plant located on the donated land. Bangor Maine made these contributions pursuant

to a master development plan that had been approved.

A Begonia must recognize income of $50,000 as to the donation.

B Begonia will have a zero basis in the land and a basis of $250,000 in the plant.

C. Begonia must recognize income of $200,000 as to the donation.

d. Begonia will have a zero basis in the land and a basis of $200,000 in the plant.

e. None of the above.