Ron and Hermione formed Wizard Corporation on January 2. Ron contributed cash of $220,000 in return for 50 percent of the corporations stock. Hermione contributed a building and land with the following fair market values and adjusted bases in return for 50 percent of the corporations stock:

	FMV			Tax-Adjusted Basis
Building	$	82,500		$	22,000
Land		192,500			88,000
Total	$	275,000		$	110,000

To equalize the exchange, Wizard Corporation paid Hermione $55,000 in addition to her stock.

6.Assume Hermiones adjusted basis in the land was $220,000. What amount of gain or loss does Hermione realize on the formation of the corporation? What amount, if any, does she recognize?

7.Assume Hermiones adjusted basis in the land was $220,000. What adjusted basis does Wizard Corporation take in the land and building received from Hermione?

8.Assume Hermiones adjusted basis in the land was $275,000. What amount of gain or loss does Hermione realize on the formation of the corporation? What amount, if any, does she recognize?

9.Assume Hermiones adjusted basis in the land was $275,000. What adjusted basis does Wizard Corporation take in the land and building received from Hermione?