Ramona and Hermione formed Wiley Corporation on January Ramona contributed cash of $ in return for percent of the corporations stock. Hermione contributed a building and land with the following fair market values and adjusted tax bases in return for percent of the corporations stock:
FMV Adjusted Tax Basis
Building $ $
Land
Total $ $
To equalize the exchange, Wiley Corporation paid Hermione $ in addition to her stock.
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 What adjusted tax basis does Wiley Corporation 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 What adjusted tax basis does Wiley Corporation take in the land and building received from Hermione?
