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The following three individuals decide to form TOBY, INC., a C corporation: James: Receives 500...

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Accounting

The following three individuals decide to form TOBY, INC., a C corporation:

James: Receives 500 shares of stock

  • Services performed (developed technology platform) $40,000
  • Contributed computer and peripheral equipment 5,000 10,000

Jenna: Receives 500 shares of stock

  • Cash 20,000
  • Office furnishings (desk, chairs, retail fixtures) 10,000 30,000

Ollie: Receives 500 shares of stock

  • Land and Building 30,000 100,000
  • Mortgage on land & building (assumed by TOBY, INC.) 60,000

  1. Does James, Jenna, and Ollie each have income, gain or loss on the transaction in which he receives stock in TOBY, INC.? Indicate the amount of any income, gain, or loss.

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