Ron and Hermione formed Wizard Corporation on January 2. Ron contributed cash of $280,000 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			Adjusted Basis
Inventory	$	78,900		$	39,450
Building		140,000			115,000
Land		206,550			278,000
Total	$	425,450		$	432,450

To equalize the exchange, Wizard Corporation paid Hermione $140,000 in addition to her stock.

Assume Hermiones adjusted basis in the land was $280,000. f. What amount of gain or loss does Hermione realize on the formation of the corporation? What amount, if any, does she recognize?

Assume Hermiones adjusted basis in the land was $280,000. g. What adjusted basis does Wizard Corporation take in the land and building received from Hermione?

Assume Hermiones adjusted basis in the land was $420,000. h. What amount of gain or loss does Hermione realize on the formation of the corporation? What amount, if any, does she recognize?

Assume Hermiones adjusted basis in the land was $420,000. i. What adjusted basis does Wizard Corporation take in the land and building received from Hermione?