Required information [The following information applies to the questions displayed below.] Ron and Hermione formed...
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Required information [The following information applies to the questions displayed below.] Ron and Hermione formed Wizard Corporation on January 2. Ron contributed cash of $235,000 in return for 50 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 50 percent of the corporation's stock: (Leave no answer blank. Enter zero if applicable. Negative amount should be indicated by a minus sign.) Building Land Total FMV $ 88,125 205,625 $ 293,750 Adjusted Tax Basis $ 23,500 94,000 $ 117,500 To equalize the exchange, Wizard Corporation paid Hermione $58,750 in addition to her stock. Assume Hermione's adjusted tax basis in the land was $235,000. f. What amount of gain or loss does Hermione realize on the formation of the corporation? What amount, if any, does she recognize? Gain or loss realized Gain or loss recognized $ 17,625
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