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Sam and Devon agree to go into business together selling college-licensed clothing. According to the agreement, Sam will contribute inventory valued at $124,000 in return for 80 percent of the stock in the corporation. Sam’s tax basis in the inventory is $74,400. Devon will receive 20 percent of the stock in return for providing accounting services to the corporation (these qualified as organizational expenditures). The accounting services are valued at $31,000. **(Negative amounts should be indicated by a minus sign. Leave no answer blank. Enter zero if applicable.)**

a. What amount of income gain or loss does Sam *realize* on the formation of the corporation? What amount, if any, does he *recognize*?

b. What is Sam’s tax basis in the stock he receives in return for his contribution of property to the corporation?

c. What amount of income gain or loss does Devon *realize* on the formation of the corporation? What amount, if any, does he *recognize*?

d. What is Devon’s tax basis in the stock he receives in return for his contribution of services to the corporation?

Assume Devon received 25 percent of the stock in the corporation in return for his services.

e. What amount of gain or loss does Sam *recognize* on the formation of the corporation?

f. What is Sam’s tax basis in the stock he receives in return for his contribution of property to the corporation?

g. What amount of income gain or loss does Devon *recognize* on the formation of the corporation?

h. What is Devon’s tax basis in the stock he receives in return for his contribution of services to the corporation?

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4. Two identical objects move with speeds of 5.0 m/s and 25.0 m/s. What is the...

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Given the following data: () 2 H49) + CO (9) CH.(g) + O2(g) AG on =...

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1. Consider the relation Treatment and FDs below. Describe, with examples, two potential issues that can arise with this design. (10 pts) Treatment(doctorID, doctorName, patientID, diagnosis) doctorI...

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