Myron, Al, and Janda make the following transfers from their sole proprietorships to a newly formed business, each receiving a 1/3 ownership interest.

In addition, the business borrows $60,000 from a local bank for working capital. The loan is a nonrecourse debt. Determine the gain or loss the owners must recognize from the transfers and their basis in the ownership interest received under the assumptions set forth here. Also, determine any gain or loss recognized by the business entity from the transfers and its basis in the property received:
a. The business is organized as a partnership.
b. The business is organized as a corporation.
c. The business is organized as an S corporation.

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Fair Market Value of Property Property/Services Assumed Basis of Liabilities Asset Owner Transfers Transferred Transferred by Business Myron Building 60,000 Al Equipment 90,000 Janda Vehicles 110,000 80,000 60,000 30,000 $30,000 30,000 10,000 Legal services