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Problem $8-52($LO $8-2)($Static$)$

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In forming Parts Incorporated as a corporation, Candice transferred inventory to Parts Incorporated in exchange for $30$ percent of the corporation's stock $(60$ shares valued at $$130,000).$ The inventory$$s fair market value was $$147,000$ and its adjusted tax basis to Candice was $$75,000.$ The inventory was subject to a $$17,000$ liability that Parts Incorporated assumed on the transfer. Candice borrowed the $$17,000$ from the bank $($using the inventory as collateral$)$ shortly before transferring the inventory to Parts Incorporated and used the loan proceeds to pay for a family vacation to Europe.

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Problem $8-52$ Part a $($Static$)$

a$.$ Assuming the transfer qualifies under $351,$ what gain or loss will Candice recognize on the transfer?

Problem $8-45$ Part b $($Algo$)$

b$.$ What is the tax basis of the investment property to Crisler Company after the contribution to capital?