Seth, Pete, Cara, and Jen form Kingfisher Corporation with the following consideration:

Consideration Transferred

Basis to

Transferor Fair Market

Value Number of Shares

Issued

From Seth$$

Inventory $$30,000$ $$96,00030*$

From Pete$$

Equipment $($$$30,000$ of depreciation taken by Pete in prior years$)45,00099,00030**$

From Cara$$

Proprietary process $15,00090,00030$

From Jen$$

Cash $30,00030,00010$

$*$Seth receives $$6,000$ in cash in addition to the $30$ shares.

$**$Pete receives $$9,000$ in cash in addition to the $30$ shares.

The value of each share of Kingfisher stock is $$3,000.$

If there is no gain or loss, enter $$0$ for the amount.

As to these transactions, provide the following information for parts $($a$)-($l$).$

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a$.$ Seth's recognized gain or loss. Identify the nature of any such gain or loss.

Seth recognizes $fill in the blank a$69010$f$8$e$07$d$035\_1$

as

$.$

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b$.$ Seth's basis in the Kingfisher Corporation stock.

$fill in the blank f$31$b$4700$a$07$c$057\_1$

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c$.$ Kingfisher Corporation's basis in the inventory.

$fill in the blank $54$a$6$acf$52$fdffbb$\_1$

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d$.$ Pete's recognized gain or loss. Identify the nature of any such gain or loss.

Pete recognizes a

of $fill in the blank d$94$e$8$dfdbfa$1$fcf$\_2$

$.$

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e$.$ Pete's basis in the Kingfisher Corporation stock.

$fill in the blank $26786702$effdfd$5\_1$

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f$.$ Kingfisher Corporation's basis in the equipment.

$fill in the blank $3$b$4$fd$10$c$4067$fde$\_1$

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g$.$ Cara's recognized gain or loss.

Cara's has

of $fill in the blank $27$f$52$ff$50003$ff$0\_2$

$.$

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h$.$ Cara's basis in the Kingfisher Corporation stock.

$fill in the blank ec$8$da$2$fb$4$fd$6$f$9$d$\_1$

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i$.$ Kingfisher Corporation's basis in the proprietary process.

$fill in the blank $8$b$1$d$6$dfc$9$feefdc$\_1$

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j$.$ Jen's recognized gain or loss.

Jen has

of $fill in the blank c$2$b$2$f$4$f$99048$fcb$\_2$

on the transfer.

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k$.$ Jen's basis in the Kingfisher stock.

$fill in the blank $4$cd$856$ffe$05$cfa$1\_1$

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l$.$ During discussions relating to the formation of Kingfisher, Seth mentions that he may be interested in either $(1)$ just selling all of his inventory in the current year for its fair market value of $$96,000$ or $(2)$ proceeding with his involvement in Kingfisher's formation as shown above but followed by a sale of his stock five years later for $$90,000.$ What would be the tax cost of these alternative plans, stated in present value terms?

Assume a discount rate of $6\%.$ The present value factors at $6\%$ are $1\mathrm{.}000$ for year $1$ and $0\mathrm{.}7473$ for year $5.$ Further, assume Seth's marginal income tax rate is $35\%$ and his capital gains rate is $15\%.$

If required, round your answers to the nearest dollar.

The present value of Seth's tax cost associated with the current sale of inventory $($alternative $1)$ for $$96,000$ is $fill in the blank $4$aa$3$a$9$fd$800$e$03$d$\_1$

The present value of Seth's tax cost associated with the current receipt of $30$ Kingfisher shares and $$6,000$ cash $($alternative $2)$ and the subsequent sale of $30$ Kingfisher shares for $$90,000$ in five years is $fill in the blank $4$aa$3$a$9$fd$800$e$03$d$\_2$

$.$