Problem $4-32($Algorithmic$)($LO$.1,2)$

Maria and Bob form Robin Corporation. Maria transfers property worth $$167,500$ with a basis of $$58,625$ for $70$ shares in Robin Corporation. Bob receives $30$ shares for property worth $$67,000$ with a basis of $$13,400$ and legal services worth $$6,700$ 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?

Maria recognizes no gain or loss $$ of $ $$ Bob recognizes $$ of $ $xq,$

Feedback $q,$

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

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

Maria has a basis of & $x.$ and Bob has a basis of $ $$ in the stock.

Feedback $q,$

Theck My Work

Partially correct

c$.$ What is Robin Corporation's basis in the property and services it received from Maria and Bob?

Robin Corporation has a basis of $\{$ in the property Maria transferred and a basis of $ $$ X in the property Bob transferred.

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