Ron and Hermione formed Wizard Corporation on January 2. Ron contributed cash of $215,000 in return for 50 percent of the corporations stock. Hermione contributed a building and land with the following fair market values and tax basis in return for 50 percent of the corporations stock:

	FMV	Adjusted Tax Basis
Building	80,625	21,500
Land	188,125	86,000
Total	268,750	107,500

To equalize the exchange, Wizard Corporation paid Hermione $53,750 in addition to her stock.

Required:

a. What amount of gain or loss does Ron recognize on the formation of the corporation?

Note: Leave no answer blank. Enter zero if applicable. Negative amount should be indicated by a minus sign.

b. What is Ron'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 recognize on the formation of the corporation?

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 tax basis does Wizard 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.

Assume Hermione's tax basis in the land was $215,000.

f. 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.

Assume Hermione's tax basis in the land was $215,000.

g. What tax basis does Wizard 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.