2017, they decided it would be more fun and probably more successful if they formed their own corporation to do paper sales. They formed MPR, Inc. by contributing assets and services in exchange for all of the stock. Below are the items transferred. 15. Mikey, Pam and Ryan all have experience working for a paper sales company. During FMV 500,000 240,000 Transferor Mikey Office Equipment 25,000 Mike 40,000 Office Equipment 75,000 Advertising Pam 0 40,000 Pam Serv 0. 100,000 RyanPatent What will be the total recognized and realized gain on this transaction? a. $448,000 and $448,000 b. $140,000 and $448,000 c. $40,000 and S40.000 d. $40,000 and $448,000 16. If a state uses a "4 factor" apportionment methodology, how many actual factors are included in the calculation? a. b. 2 d. 4 17. Which of the following is not true with respect to a section 754 election? a. The election is made by the partnership b. It applies to outside basis transactions c. It can be revoked at any time d. All of the above are true 18. P.L. 86-272 protects out of state businesses from which type of taxes: a. Property b. Sales c. Income d. All of the above e. None of the above