Question: ( 1 ) Teresa contributes a large freezer with a basis of $ 1 5 0 , 0 0 0 and a fair market value

(1) Teresa contributes a large freezer with a basis of $150,000 and a fair market value of $100,000 in exchange for 20 shares of voting common stock. Kate contributes unimproved land on which the corporation will operate its business with a basis of $30,000 and a fair market value of $100,000 in exchange for 20 shares of voting common stock. What are the tax consequences to Teresa, Kate, and Shake, Inc. as a result of the formation of the corporation?

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