Doris, Walt, and Pat form Swan Corporation with the following investments:

In addition to the 500 shares of stock, Pat receives $100,000 in cash from Swan Corporation. Assume that each share of Swan stock is worth $1,000.
a. How much loss does Walt realize? Recognize?
b. What is Walt's basis in the Swan stock?
c. What is Swan Corporation's basis in the equipment?
d. How much gain does Pat realize? Recognize?
e. What is Pat's basis in the Swan stock?
f. What is Swan's basis in the land?
g. In terms of the answers to parts (a) through (f), does it matter whether Swan is formed as a C corporation or as an S corporation? Explain.

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Basis to Transferor Fair Market Number of Shares Issued Value From Doris-cash $200,000 400,000 550,000 $200,000 200 From Walt-equipment From Pat-land 300 600,000 500