Zach Davis, Andy Coughenour, and Cara Pattinato are forming D$.$C$.$P$.$ Corporation. The following

table illustrates their contributions and what they receive from D$.$C$.$P$.$ Corporation.

Contribution to D$.$C$.$P$.$ Received From D$.$C$.$P$.$

Type of Contribution

Fair

Market

Value

Adjusted

Basis

Mortgage $(5$

years old$)$

Number of

Shares of

Stock

Other

Property

Received

Zach

Accounting services $$500,000--$

$54-$

Equipment $$40,000$ $$14,000$

Andy Equipment $$70,000$ $$80,000-6$ $$10,000$

cash

Cara Building $$1,000,000$ $$200,000$ $$230,00077-$

$($a$)$ How much gain$/$income or loss, if any, does Cara recognize upon formation of D$.$C$.$P$.?$

$($b$)$ Suppose, instead, that Zach receives $34$ shares in exchange for $$300,000$ of legal services and

$$40,000$ of equipment $($the rest of the numbers in the problem remain the same$).$ In that case,

how much gain$/$income$,$ if any, does Cara recognize upon formation of D$.$C$.$P$.?$

$($c$)$ Same facts as $($b$).$ How much gain$/$income or loss, if any, does Zach recognize upon formation

of D$.$C$.$P$.?$