Ron and Hermione formed Wizard Corporation on January 2. Ron contributed cash of $300,000 in return for 50 percent of the corporation's stock. Hermione contributed a building and land with the following fair market values and adjusted bases in return for 50 percent of the corporation's stock: Building Land Total FMV $160,000 240,000 $400,000 Tax- Adjusted Basis $ 40,000 160,000 $200,000 To equalize the exchange, Wizard Corporation paid Hermione $100,000 in addition to her stock. a. What amount of gain or loss does Ron realize on the formation of the corporation? What amount, if any, does he recognize? (Leave no answer blank. Enter zero if applicable. Negative amount should be indicated by a minus sign.) Gain or loss realized Gain or loss recognized b. What is Ron's tax basis in the stock he receives in return for his contribution of property to the corporation? (Leave no answer blank. Enter zero if applicable. Negative amount should be indicated by a minus sign.) Tax basis c. What amount of gain or loss does Hermione realize on the formation of the corporation? What amount, if any, does she recognize? (Leave no answer blank. Enter zero if applicable. Negative amount should be indicated by a minus sign.) Gain or loss realized Gain or loss recognized d. What is Hermione's tax basis in the stock she receives in return for her contribution of property to the corporation? (Leave no answer blank. Enter zero if applicable. Negative amount should be indicated by a minus sign.) Tax basis e. What adjusted basis does Wizard Corporation take in the land and building received from Hermione? (Leave no answer blank. Enter zero if applicable. Negative amount should be indicated by a minus sign.) Land Building Adjusted basis Assume Hermione's adjusted basis in the land was $300,000. _f. What amount of gain or loss does Hermione realize on the formation of the corporation? What amount, if any, does she recognize? (Leave no answer blank. Enter zero if applicable. Negative amount should be indicated by a minus sign.) Gain or loss realized Gain or loss recognized