Ron and Hermione formed Wizard Corporation on January 2. Ron contributed cash of $140,000 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	$	88,000		$	22,000
Land		132,000			88,000
Total	$	220,000		$	110,000

To equalize the exchange, Wizard Corporation paid Hermione $80,000 in addition to her stock

e. What adjusted basis does Wizard Corporation take in the land and building received from Hermione?

	Land	Building
Adjusted Basis	?	?

Assume Hermiones adjusted basis in the land was $140,000. f. What amount of gain or loss does Hermione realize on the formation of the corporation? What amount, if any, does she recognize?

Gain or loss realized	?
Gain or loss recognized	?

Assume Hermiones adjusted basis in the land was $140,000. g. What adjusted basis does Wizard Corporation take in the land and building received from Hermione?

	land	building
adjusted basis

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

Gain or loss realized	?
Gain or loss recognized	?

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

	land	building
adjusted basis	?	?