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Problem 15-60 (LO 15-3) (Static)

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[The following information applies to the questions displayed below.]

Mickey, Mickayla, and Taylor are starting a new business (MMT). To get the business started, Mickey is contributing $200,000 for a 40 percent ownership interest, Mickayla is contributing a building with a value of $200,000 and a tax basis of $150,000 for a 40 percent ownership interest, and Taylor is contributing legal services for a 20 percent ownership interest. What amount of gain or income is each owner required to recognize under each of the following alternative situations? [Hint: Look at IRC 351 and 721.] (Leave no answer blank. Enter zero if applicable.)

Problem 15-60 Part b (Static)

b. MMT is formed as an S corporation.