Mickey, Mickayla, and Taylor are starting a new business (MMT). To get the business started, Mickey...

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Accounting

Mickey, Mickayla, and Taylor are starting a new business (MMT).To get the business started, Mickey is contributing $240,000 for a40 percent ownership interest, Mickayla is contributing a buildingwith a value of $240,000 and a tax basis of $160,000 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 noanswer blank. Enter zero if applicable.)
a.MMT is formed as a C corporation.
Gain to berecognized:
b.MMT is formed as an S corporation.
Gain to berecognized:
c.MMT is formed as an LLC.
Gain to berecognized:

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Solution Calculation of gain to be recognised Note 1 Particulars Mickey Mickayla Taylor a MMT is C Corporation 0 0 120000 Gain on ordinary Incone Note 2 b MMT is S Corporation 0 0 120000 Gain on ordinary Income See Answer

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