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Ramona and Hermione formed Wiley Corporation on January 2. Ramona contributed cash of $270,000 in...

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Accounting

Ramona and Hermione formed Wiley Corporation on January 2. Ramona contributed cash of $270,000 in return for 50 percent of the corporations stock. Hermione contributed a building and land with the following fair market values and adjusted tax bases in return for 50 percent of the corporations stock:
FMV Adjusted Tax Basis
Building $ 101,250 $ 27,000
Land 236,250108,000
Total $ 337,500 $ 135,000
To equalize the exchange, Wiley Corporation paid Hermione $67,500 in addition to her stock.
f. Assume Hermione's adjusted tax basis in the land was $270,000.
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 $337,500.
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?

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