Agnes, Becky, and Carol form a business entity with each contributing the following.

Their ownership percentages will be as follows.
Agnes ........ 40%
Becky ........ 40%
Carol ......... 20%
Becky€™s land has a $20,000 mortgage that is assumed by the entity. Carol is an attorney who receives her ownership interest in exchange for legal services. Determine the recognized gain to the owners, the basis for their ownership interests, and the entity€™s basis for its assets if the entity is organized as:
a. A partnership.
b. A C corporation.
c. An S corporation.

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Adjusted Basis $100,000 Agnes: Cash Becky: Land Carol: Services Fair Market Value $100,000 120,000 50,000 60,000