Tony, Ursula, Vera, Walter, and Xavier form TUVWX Corporation Tony contributes land with a basis of $80,000 (FMV of $90,000) Receives 65 shares and $25,000 Ursula contributes land with a basis of $50,000 (FMV of $60,000) Receives 57 shares of stock and $3,000 Vera contributes services worth $30,000 Receives 30 shares Walter contributes a building with a basis of $150,000 (FMV of $125,000) and subject to a mortgage of $80,000 Assume no depreciation recapture Receives 45 shares Xavier contributes a building with a basis of $60,000 (FMV of $85,000), subject to a mortgage of $78,000 Assume no depreciation recapture Receives 7 shares 4 Depreciation Recapture, Section 1231, and Capital Gains and Losses (similar to C3 33) Northern Corporation sold the following property on February 20 of the current year The corporation used the equipment, building, and land in its business and has held all of the property for more than one year Aside from these transactions, Northern had $650,000 of operating income during the current year Norther has $36,000 nonrecaptured Section 1231 loss from prior years Determine the character of the gains and losses and calculate the corporation's taxable income

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Tony, Ursula, Vera, Walter, and Xavier form TUVWX Corporation Tony contributes land with a basis of $80,000 (FMV of $90,000) Receives 65 shares and $25,000

Tony, Ursula, Vera, Walter, and Xavier form TUVWX Corporation

Tony contributes land with a basis of $80,000 (FMV of $90,000)

Receives 65 shares and $25,000

Ursula contributes land with a basis of $50,000 (FMV of $60,000)

Receives 57 shares of stock and $3,000

Vera contributes services worth $30,000

Receives 30 shares

Walter contributes a building with a basis of $150,000 (FMV of $125,000) and subject to a mortgage of $80,000. Assume no depreciation recapture.

Receives 45 shares

Xavier contributes a building with a basis of $60,000 (FMV of $85,000), subject to a mortgage of $78,000. Assume no depreciation recapture.

Receives 7 shares

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4. Depreciation Recapture, Section 1231, and Capital Gains and Losses (similar to C3-33) Northern Corporation sold the following property on February 20 of the current year: The corporation used the equipment, building, and land in its business and has held all of the property for more than one year. Aside from these transactions, Northern had $650,000 of operating income during the current year. Norther has $36,000 nonrecaptured Section 1231 loss from prior years. Determine the character of the gains and losses and calculate the corporation's taxable income