Ramona and Hermione formed Wiley Corporation on January Ramona contributed cash of $ in return for
percent of the corporation's stock. Hermione contributed a building and land with the following fair market values and
adjusted tax bases in return for percent of the corporation's stock:
FMV Adjusted Tax Basis
Building $ $
Land $ $
Total $ $
To equalize the exchange, Wiley Corporation paid Hermione $ in addition to her stock.
A What amount of gain or loss does Ramona realize on the formation of the corporation? What amount, if any, does Ramona recognize?
B What is Ramona's tax basis in the stock received in return for the contribution of property to the corporation?
C What amount of gain or loss does Hermoine realize on the formation of the corporation? What amount, if any, does she recognize?
D What is Hermione's tax basis in the stock received in return for the contribution of property to the corporation?
E What adjusted tax basis does Wiley Corporation take in the land and building received from Hermione?
F Assume Hermione's adjusted tax basis in the land was $ What amount of gain or loss does Hermione realize on the formation of the corporation? What amount, if any, does she recognize?
G Assume Hermione's adjusted tax basis in the land was $ What adjuested tax basis does Wiley Corportation take in the land and building received from Hermione?
H Assume Hermione's adjusted tax basis in the land was $ What amount of gain or loss does Hermione realize on the formation of the corporation? What amount, if any, does she recognize?
I. Assume Hermione's adjusted tax basis in teh land was $ What adjusted tax basis does WIley Corporation take in the land and building received from Hermione?
J Assume Hermione's adjusted tax basis in the land was $ What election can Hermione and WIley Corporation make to allow Wiley Corporation to take a carryover basis in the land?
