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Ron and Hermione formed Wizard Corporation on January 2. Ron contributed cash of $260,000 in return for 50 percent of the corporation's stock. Hermione contributed

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Ron and Hermione formed Wizard Corporation on January 2. Ron contributed cash of $260,000 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: - Adjusted Basis FMV Building Land $152,000 228,000 $380,000 $ 38,000 152,000 $190,000 Total To equalize the exchange, Wizard Corporation paid Hermione $120,000 in addition to her stock Assume Hermione's adjusted basis in the land was $260.000. 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 opplicable. Negetive amount should be indicated by a minus sign.) Gain or loss realized S 120,000 Gain or loss recognized 48,000 Assume Hermione's adjusted basis in the land was $260,000. g. 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 140.000 72,000 S Assume Hermione's adjusted basis in the land was $380,000. h. 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.) ces Gain or loss realized S Gain or loss recognized S Assume Hermione's adjusted basis in the land was $380,000 i. 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.) Answer is complete but not entirely correct. Land Building Adjusted basis 38,000 S 300,000

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