Problem $5$

Determine the basis of stock in the hands of the shareholder in each of the following instances.

Assume that the $80\%$ rule is met in all cases.

a$.$ Contribution of property with a basis of $$2,000$ and an FMV of $$2,800.$

b$.$ Contribution of property with a basis of $$6,000$ and an FMV of $$7,600.$ The

stockholder also received $$1,000$ cash from the corporation as part of the stock

transaction.

c$.$ Contribution of property with a basis of $$16,400$ and an FMV of $$25,000.$ The

stockholder also received property with an FMV of $$3,400$ from the corporation as part

of the stock transaction.

d$.$ Contribution of a building with an FMV of $$400,000,$ a mortgage $($assumed by the

corporation$)$ of $$200,000,$ and a basis of $$250,000.$

e$.$ Contribution of a building with an FMV of $$3,400,000,$ a mortgage $($assumed by the

corporation$)$ of $$2,000,000,$ and a basis of $$1,270,000.$