LO.1, 3 Ron and Gail form Maple Corporation with the following consideration:

Consideration Transferred Basis to Transferor Fair Market Value Number of Shares Issued From Ron—

Cash $ 50,000 $ 50,000 Installment obligation 140,000 250,000 30 From Gail—

Cash 150,000 150,000 Equipment 125,000 250,000 Patent 10,000 300,000 70 The installment obligation has a face amount of $250,000 and was acquired last year from the sale of land held for investment purposes (adjusted basis of $140,000). As to these transactions, provide the following information:

a. Ron’s recognized gain or loss.

b. Ron’s basis in the Maple Corporation stock.

c. Maple Corporation’s basis in the installment obligation.

d. Gail’s recognized gain or loss.

e. Gail’s basis in the Maple Corporation stock.

f. Maple Corporation’s basis in the equipment and the patent.
g. How would your answers to the preceding questions change if Ron received common stock and Gail received preferred stock?
h. How would your answers change if Gail was a partnership?