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  3. bill, bob, sue and jane decided for form a corpora

Bill, Bob, Sue and Jane decided for form a corporation, Big Bubbas Brewing Company, each...

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Accounting

Bill, Bob, Sue and Jane decided for form a corporation, Big Bubbas Brewing Company, each will end up with 2,500 shares. Each individual gave the following: Bill gave $150,000 in cash and brewing equipment with a FMV of $50,000 and his basis was $10,000. Bob gave a building and land with a FMV of $350,000, his basis in the property was $60,000 and the property had a loan of $150,000. Sue gave a food truck with a FMV of $60,000, her basis in the truck was $100,000. In addition, she gave $10,000 of legal services. Last, she contributed accounts receivable with a FMV of $130,000, she was a cash basis taxpayer. Last, Jane gave additional brewing equipment with a FMV of $300,000, her basis was $25,000 and the equipment had a loan of $100,000. The shareholders ask, if there are any gains from the transactions, is there a way to remove the gains? I am looking for an in-depth understanding, including the ability to explain using code sections, court cases and other primary authority as necessary.

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