Using the information in the exhibits, provide the appropriate amounts for the questions asked showing all work. Write gains as positive values and losses as negative values using a leading minus (-) sign.

Exhibit 1: Shareholder Contributions to Amber Co.

Shareholder 1 - Clay: Ownership of Stock = 40% Contributions = $20,000 in cash; property worth $60,000 ($40,000 basis)

Shareholder 2 - Finch: Ownership of Stock = 20% Contributions = $10,000 in cash; property worth $50,000 ($30,000 basis), with related assumed recourse liability of $20,000

Shareholder 3 - Lark: Ownership of Stock = 25% Contributions = property worth $60,000 ($50,000 basis); received $10,000 in cash from Amber Co.

Shareholder 4 - Token: Ownership of Stock = 15% Contributions = $10,000 in cash; property worth $40,000 ($5,000 basis), with a related assumed recourse liability of $20,000

Questions:

1. What is the Shareholder tax basis in Amber Co. Stock for Clay?

2. What is the Shareholder tax basis in Amber Co. Stock for Finch?

3. What is the Shareholder gain realized for Lark?

4. What is the Shareholder gain realized for Token?

5. What is the Shareholder gain recognized for Clay?

6. What is the Shareholder gain recognized for Token?

7. What is Amber Co.'s tax basis in noncash property received from Finch and Lark, respectively?

Thank you for your help!