Ramona and Hermione formed Wiley Corporation on January 2. Ramona contributed cash of $200,000 in return for 50 percent of the corporation's stock. Hermione contributed a building and land with the following fair market values and adjusted tax bases in return for 50 percent of the corporation's stock:

FMVAdjusted Tax BasisBuilding$ 75,000$ 20,000Land175,00080,000Total$ 250,000$ 100,000

To equalize the exchange, Wiley Corporation paid Hermione $50,000 in addition to her stock.

Required:

1. What amount of gain or loss does Ramona realize on the formation of the corporation? What amount, if any, does Ramona recognize?

Note: Leave no answer blank. Enter zero if applicable. Negative amount should be indicated by a minus sign.

1. What is Ramona's tax basis in the stock received in return for the contribution of property to the corporation?

Note: Leave no answer blank. Enter zero if applicable. Negative amount should be indicated by a minus sign.

1. What amount of gain or loss does Hermione realize on the formation of the corporation? What amount, if any, does she recognize?

Note: Leave no answer blank. Enter zero if applicable. Negative amount should be indicated by a minus sign.

1. What is Hermione's tax basis in the stock received in return for the contribution of property to the corporation?

Note: Leave no answer blank. Enter zero if applicable. Negative amount should be indicated by a minus sign.

1. What adjusted tax basis does Wiley Corporation take in the land and building received from Hermione?

Note: Leave no answer blank. Enter zero if applicable. Negative amount should be indicated by a minus sign.

1. Assume Hermione's adjusted tax basis in the land was $200,000.

What amount of gain or loss does Hermione realize on the formation of the corporation? What amount, if any, does she recognize?

Note: Leave no answer blank. Enter zero if applicable. Negative amount should be indicated by a minus sign.

1. Assume Hermione's adjusted tax basis in the land was $200,000.

What adjusted tax basis does Wiley Corporation take in the land and building received from Hermione?

Note: Leave no answer blank. Enter zero if applicable. Negative amount should be indicated by a minus sign.

1. Assume Hermione's adjusted tax basis in the land was $250,000.

What amount of gain or loss does Hermione realize on the formation of the corporation? What amount, if any, does she recognize?

Note: Leave no answer blank. Enter zero if applicable. Negative amount should be indicated by a minus sign.

1. Assume Hermione's adjusted tax basis in the land was $250,000.

What adjusted tax basis does Wiley Corporation take in the land and building received from Hermione?

Note: Leave no answer blank. Enter zero if applicable. Negative amount should be indicated by a minus sign.

1. Assume Hermione's adjusted tax basis in the land was $250,000.

What election can Hermione and Wiley Corporation make to allow Wiley Corporation to take a carryover basis in the land?