Problem $18-32($LO$.1,2)$

Mar$$a and Bob form Robin Corporation. Mar$$a transfers property worth $$420,000$ with a basis of $$150,000$ for $70$ shares in Robin Corporation. Bob receives $30$ shares for property worth $$165,000$ with a basis of $$30,000$ and legal services worth $$15,000$ in organizing the corporation.

If there is no gain or loss, enter $"0"$ for the amount.

a$.$ What gain or income, if any, will the parties recognize on the transfer?

Mar$$a recognizes $$ no gain or loss of $ $.$ Bob recognizes $$ of $ $.$

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Section $351$ is mandatory if a transaction satisfies the provision's requirements. The three requirements for nonrecognition of gain under $351$ are that $(1)$ property is transferred $(2)$ in exchange for stock and $(3)$ the property transferors are in control of the cor after the exchange.

b$.$ What basis do Mar$$a and Bob have in the Robin Corporation stock?

Mar$$a has a basis of $ $,$ and Bob has a basis of $ $$ in the stock.

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