Ramona and Hermione formed Wiley Corporation on January 2. Ramona contributed cash of $300,000 in return for 50 percent of the corporations stock. Hermione contributed a building and land with the following fair market values and adjusted tax bases in return for 50 percent of the corporations stock:

FMV Adjusted Tax Basis

Building 112,500 $ 30,000

Land 262,500 120,000

Total$ 375,000$ 150,000

part 1. Assume Hermione's adjusted tax basis in the land was $300,000. What amount of gain or loss does Hermione realize on the formation of the corporation? What amount, if any, does she recognize?

part 2. Assume Hermione's adjusted tax basis in the land was $300,000. What adjusted tax basis does Wiley Corporation take in the land and building received from Hermione?