Mickey, Mickayla, and Taylor are starting a new business (MMT).To get the business started, Mickey is contributing $235,000 for a40 percent ownership interest, Mickayla is contributing a buildingwith a value of $235,000 and a tax basis of $158,750 for a 40percent ownership interest, and Taylor is contributing legalservices for a 20 percent ownership interest. What amount of gainis each owner required to recognize under each of the followingalternative situations? [Hint: Look at §351 and §721.](Leave no answer blank. Enter zero ifapplicable.)
a. MMT is formed as a C corporation.
b. MMT is formed as an S corporation.
c. MMT is formed as an LLC.
Find the Gain to be recognized for A throughC
