10 a,b

Pick the best answer based on the following information: Harold transfers the following to a newly formed corporation: Land (basis of $50,000 and FMV of $100,000 ) Building (basis of $50,000 and FMV of $400,000 ) Accounts payable of $10,000 (for business supplies) Notes Payable 1 for building improvements of $185,000 a. 357( b) and $357 (c) problem so 357 (b) controls b. $357(c) problem c. $357(b) problem d. $357 (b) and $357 (c) problem so $357 (c) controls e. No 357 (b) or $357 (c) problems What is the stock basis for the following transactions? Ricky and Lucy form a new corporation. Ricky transfers land ($30,000 basis and FMV of $70,000) and gets back $10,000 in cash Lucy transfers cash of $60,000 a. Ricky's basis is $30,000 and Lucy's is $60,000 b. Ricky's basis is $40,000 and Lucy's is $60,000 c. All taxable d. Ricky's basis is $20,000 and Lucy's is $60,000 e. Ricky's basis is $60,000 and Lucy's basis is $60,000 f. Ricky's basis is $60,000 and Lucy's is $30,000 9. Ricky's basis is $30,000 and Lucy's is $30,000