Required:

a) 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.

b) 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.

c) 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.

d) 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.

e) 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.

f) 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.

g) 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.

h) Assume Hermione's adjusted tax basis in the land was $312,500. 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.

i) Assume Hermione's adjusted tax basis in the land was $312,500. 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.

j) Assume Hermione's adjusted tax basis in the land was $312,500. What election can Hermione and Wiley Corporation make to allow Wiley Corporation to take a carryover basis in the land?

Ramona and Hermione formed Wiley Corporation on January 2. Ramona contributed cash of $250,000 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: To equalize the exchange, Wiley Corporation paid Hermione $62,500 in addition to her stock. Ramona and Hermione formed Wiley Corporation on January 2. Ramona contributed cash of $250,000 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: To equalize the exchange, Wiley Corporation paid Hermione $62,500 in addition to her stock