Question $24$

Jimmy, Kim, and Francesca form WML Corporation by contributing the following:

Jimmy receives $50\%$ stock $($FMV $$250,000),$ Kim receives $40\%$ stock $($FMV $$200,000),$ and Francesca receives $10\%$ stock

$($FMV $$50,000).$ In addition, Kim receives $$50,000$ cash from the corporation.

$($a$)$ What is the amount of recognized gain $($or income$)$ for Jimmy, Kim, and Francesca?

$($b$)$ What basis does Jimmy, Kim, and Francesca have in their WML stock?

$($c$)$ Assume that other facts above do not change, but the value of Francesca's accounting services is $$150,000,$ such that

she receives $25\%$ of the corporation's stock, how does your answer to part $($a$)$ change? i$.$e$.,$ what is the amount of

recognized gain $($or income$)$ for Jimmy, Kim, and Francesca?