Ramos, Mason, & Kyle form Rexus Corporation by making the following contributions:

Shareholder	Asset	Basis	FMV
Ramos	Land (held as an investment by him)	$25,000	$30,000
Mason	Machinery	$50,000	$30,000
Kyle	Inventory	$15,000	$30,000

Each shareholder receives 20 shares of stock in the corporation and each shareholder received a $10,000 note from the corporation.

Answer the following six questions with the information provided above:

1. What is each shareholders realized gain or loss?
2. What is each shareholders recognized gain or loss?
3. What is each shareholders basis in their stock? When does their holding period begin?
4. Create Rexus Corps tax balance sheet. (With asset, basis, FMV, Recognized Gain or Loss)
5. Create Rexus Corps FMV balance sheet. (With Asset, Basis & FMV)
6. If each shareholder sold his/her stock tomorrow, how much gain or loss would each of them recognize? How does this gain/loss relate to part A. & B. of this question?