Problem $4-26($LO$.1,2)$

Seth, Pete, Cara, and Jen form Kingfisher Corporation with the following consideration:

Consideration Transferred

$\backslash$table$[[$Basis to$,$Fair Market,Number of Shares$],[$Transferor$,$Value,Issued$]]$

From Seth$-$

Inventory

$$30,000$

$$96,000$

${30}^{**}$

From Pete$-$

Equipment $($ $$30,000$ of

depreciation taken by Pete

$45,000$

$99,00030**$

in prior years$)$

From Cara$-$

Proprietary trocess

$15,000$

$90,000$

$30$

From Jen$-$

Cash

$30,000$

$30,000$

$10$

$"50$th rectivers $$6,000$ in cash in acdation to the $30$ sineree$.$

$**$Pete recelves $$9,000$ in cash in addition to the $30$ shares.

The value of each share of Kinghisher stock is $$3,000.$

TH there is no gain or loss, enter so for the amount.

As to these transactions, provide the following information for parts $($a$)-(0.$

a$.$ Seth's recognized gain or loss. Identify the nature of any such gain or loss.

Seth recognizes $1$ as $$

b$.$ Feth's basis in the Kingnsher Corporation stock.

c$.$ Kingfisher Corporation's basis in the irventory.

$$

d$.$ Pete's recognired gain or loss. Identify the nature of any such gain or loss. Eate recnanizes a$($n$)-$ of $3$