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Ron and Hermione formed Wizard Corporation on January 2. Ron contributed cash of $280,000 in...

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Accounting

Ron and Hermione formed Wizard Corporation on January 2. Ron contributed cash of $280,000 in return for 50 percent of the corporations stock. Hermione contributed a building and land with the following fair market values and adjusted basis in return for 50 percent of the corporations stock: FMV Tax-Adjusted Basis Building 168,000 42,000 Land 252,000 168,000 Total $ 420,000 $ 210,000 To equalize the exchange, Wizard Corporation paid Hermione $140,000 in addition to her stock. (Leave no answer blank. Enter zero if applicable. Negative amounts should be indicated by a minus sign.) rev: 10_05_2018_QC_CS-141665 a. What amount of gain or loss does Ron realize on the formation of the corporation? What amount, if any, does he recognize? b. What is Rons tax basis in the stock he receives in return for his contribution of property to the corporation?c. What amount of gain or loss does Hermione realize on the formation of the corporation? What amount, if any, does she recognize?

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