Sam and Devon agree to go into business together selling college$-$licensed clothing. According to the agreement, Sam will contribute inventory valued at $$84,000$ in return for $80$ percent of the stock in the corporation. Sam's tax basis in the inventory is $$47,000.$ Devon will receive $20$ percent of the stock in return for providing accounting services to the corporation $($these qualify as organizational expenditures$).$ The accounting services are valued at $$21,000.$

Note: Negative amounts should be indicated by a minus sign. Leave no answer blank. Enter zero if applicable.

Required:

What amount of income gain or loss does Sam realize on the formation of the corporation? What amount, if any, does Sam recognize? $$37,000$ and $$0$ answer

What is Sam's tax basis in the stock received in return for his contribution of property to the corporation? $$47,000$ answer

What amount of income, gain, or loss does Devon realize on the formation of the corporation? What amount, if any, does Devon recognize? $$21,000$ and $$21,000$ answers

What is Devon's tax basis in the stock received in return for the contribution of services to the corporation? $$21,000$ answer

Assume Devon received $25$ percent of the stock in the corporation in return for his services.

What amount of gain or loss does Sam recognize on the formation of the corporation? $$37,000$ answer

Assume Devon received $25$ percent of the stock in the corporation in return for his services.

What is Sam's tax basis in the stock received in return for the contribution of property to the corporation? $$84,000$ answer

Assume Devon received $25$ percent of the stock in the corporation in return for his services.

What amount of income, gain, or loss does Devon recognize on the formation of the corporation?

Note: Do not round intermediate calculations. Round your final answer to the nearest whole dollar amount. $?????$

Assume Devon received $25$ percent of the stock in the corporation in return for his services.

What is Devon's tax basis in the stock received in return for the contribution of services to the corporation?

Note: Do not round intermediate calculations. Round your final answer to the nearest whole dollar amount. $?????$