Tyler, Kaley, Tim, and Antonio decided to organize the Mustang Corporation with the following investments:

Tyler contributes equipment held 12 months with a basis of $10,000. The equipment is worth $60,000 for 50 shares. Tyler also transfers a personal liability of $20,000 which the Mustang Corporation assumes.

Kaley contributes land used in the business which was held 36 months and was worth $60,000 [basis to Kaley of $10,000] with a $20,000 business mortgage for 40 shares. The Mustang Corporation assumes the mortgage.

Tim contributes inventory held 13 months. The inventory is worth $40,000 [basis of $5,000] with a personal note of $10,000 for 30 shares. The Mustang Corporation assumes the personal note .

Antonio contributes FedEX common stock held 11 months [basis of $25,000] worth $20,000 for 20 shares.

NOTE: Each share is worth $1,000.

1. How much gain, if any, will the following shareholders recognize?

Tyler __________________

Kaley ___________________

Tim ___________________

Antonio ___________________

B. What basis will the following shareholders have in the stock they receive?

Tyler __________________

Kaley ___________________

Tim ___________________

Antonio ___________________

C. What is the holding period of the stock each shareholder received [number of months or next day]?

Tyler __________________

Kaley ___________________

Tim ___________________

Antonio ___________________

D. What basis will the Mustang Corporation have in the following assets?

Land ________________

Inventory _________________

FedEx common stock __________________

E. What holding period will the Mustang Corporation have in the following assets?

Land __________________

FedEx common stock __________________