Problem 12-16 (LO. 2, 4) Seth, Pete, Cara, and Jen form Kingfisher Corporation with the following consideration: Consideration Transferred Basis to Transferor Fair Market Value Number of Shares Issued From Seth- Inventory $30,000 $96,000 30* From Pete- Equipment ($30,000 of depreciation taken by Pete in prior years) 45,000 99,000 From Cara- Proprietary process 15,000 90,000 From Jen- Cash 30,000 30,000 *Seth receives $6,000 in cash in addition to the 30 shares. **Pete receives $9,000 in cash in addition to the 30 shares. The value of each share of Kingfisher stock is $3,000. if there is no gain or loss, enter $0 for the amount. As to these transactions, provide the following information for parts (a) - (0). a. Seth's recognized gain or loss. Identify the nature of any such gain or loss. Seth recognizes $ 6,000 as ordinary income Feedback b. Seth's basis in the Kingfisher Corporation stock. $ 30,000 Feedback c. Kingfisher Corporation's basis in the inventory. $ 36,000 Feedback d. Pete's recognized gain or loss. Identify the nature of any such gain or loss. Pete recognizes a ordinary income of $ 9,000 e. Pete's basis in the Kingfisher Corporation stock. $ 45,000 Feedback f. Kingfisher Corporation's basis in the equipment. $ 54,000 Feedback g. Cara's recognized gain or loss. Cara's has no gain or loss of $ C 0 v. Feedback h. Cara's basis in the Kingfisher Corporation stock. $ 15,000 Feedback h. Cara's basis in the Kingfisher Corporation stock. $ 15,000 Feedback i. Kingfisher Corporation's basis in the proprietary process. $ 15,000 Feedback j. Jen's recognized gain or loss. Jen has no gain or loss of $ 0 on the transfer. Feedback k. Jen's basis in the Kingfisher stock. $ 30,000 Feedback I. During discussions relating to the formation of Kingfisher, Seth mentions that he may be interested in either (1) just selling all of his inventory in the current year for its fair market value of $96,000 or (2) proceeding with his involvement in Kingfisher's formation as shown above but followed by a sale of his stock five years later for $90,000. What would be the tax cost of these alternative plans, stated in present value terms? Assume a discount rate of 6%. The present value factors at 6% are 1.000 for year 1 and 0.7473 for year 5. Further, assume Seth's marginal income tax rate is 35% and his capital gains rate is 15%. If required, round your answers to the nearest dollar. The present value of Seth's tax cost associated with the current sale of inventory (alternative 1) for $96,000 is $ 23,100 The present value of Seth's tax cost associated with the current receipt of 30 Kingfisher shares and $6,000 cash (alternative 2) and the subsequent sale of 30 Kingfisher shares for $90,000 in five years is $ ox