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QUESTION 5 (CHAPTER 18) Zach Davis, Andy Coughenour, and Cara Pattinato are forming D.C.P. Corporation. The following table illustrates their contributions and what they receive

image text in transcribed QUESTION 5 (CHAPTER 18) Zach Davis, Andy Coughenour, and Cara Pattinato are forming D.C.P. Corporation. The following table illustrates their contributions and what they receive from D.C.P. Corporation. (a) How much gain/income or loss, if any, does Cara recognize upon formation of D.C.P.? (b) Suppose, instead, that Zach receives 60 shares in exchange for $600 of legal services. In that case, how much gain/income, if any, does Cara recognize upon formation of D.C.P.? (c) Same facts as (b). How much gain/income or loss, if any, does Andy recognize upon formation of D.C.P

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