Tom and Gail form Owl Corporation with the following consideration:

The installment note has a face amount of $350,000 and was acquired last year from the sale of land held for investment purposes (adjusted basis of $240,000). As to these trans actions, provide the following information:
a. Tom's recognized gain or loss.
b. Tom's basis in the Owl Corporation stock.
c. Owl Corporation's basis in the installment note.
d. Gail's recognized gain or loss.
e. Gail's basis in the Owl Corporation stock.
f. Owl Corporation's basis in the inventory, equipment, and patentable invention.
g. How would your answers to the preceding questions change if Tom received com mon stock and Gail received preferred stock?
h. How would your answers change if Gail was a partnership?

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Consideration Transferred Basis to Transferor Fair Market Value Number of Shares Issued From Tom Cash Installment note 50,000 50,000 350,000 240,000 40 From Gail_ 60,000 0 Inventory Equipment Patentable invention 125,000 15,000 250,000 300,000 60