Sam and Devon agree to go into business together selling college-licensed clothing. According to the agreement,...

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Sam and Devon agree to go into business together selling college-licensed clothing. According to the agreement, Sam will contribute inventory valued at $123,200 in return for 80 percent of the stock in the corporation. Sam's tax basis in the inventory is $73,920. Devon will receive 20 percent of the stock in return for providing accounting services to the corporation (these qualified as organizational expenditures). The accounting services are valued at $30,800. (Negative amounts should be indicated by a minus sign. Leave no answer blank. Enter zero if applicable.) a. What amount of income gain or loss does Sam realize on the formation of the corporation? What amount, if any, does he recognize? Income, gain or loss realized $ 49,280 Income, gain or loss recognized b. What is Sam's tax basis in the stock he receives in return for his contribution of property to the corporation? Tax basis c. What amount of income gain or loss does Devon realize on the formation of the corporation? What amount, if any, does he recognize? Income, gain or loss realized Income, gain or loss recognized d. What is Devon's tax basis in the stock he receives in return for his contribution of services to the corporation? Tax basis Assume Devon received 25 percent of the stock in the corporation in return for his services. e. What amount of gain or loss does Sam recognize on the formation of the corporation? Answer is complete but not entirely correct. Gain or loss recognized $ 46,200 Assume Devon received 25 percent of the stock in the corporation in return for his services. f. What is Sam's tax basis in the stock he receives in return for his contribution of property to the corporation? Answer is complete but not entirely correct. Tax basis $ 69,300 8 Assume Devon received 25 percent of the stock in the corporation in return for his services. g. What amount of income gain or loss does Devon recognize on the formation of the corporation? Answer is complete but not entirely correct. Income, gain or loss recognized 24 7,700 Assume Devon received 25 percent of the stock in the corporation in return for his services. h. What is Devon's tax basis in the stock he receives in return for his contribution of services to the corporation? Answer is complete but not entirely correct. Tax basis 23,100 Sam and Devon agree to go into business together selling college-licensed clothing. According to the agreement, Sam will contribute inventory valued at $123,200 in return for 80 percent of the stock in the corporation. Sam's tax basis in the inventory is $73,920. Devon will receive 20 percent of the stock in return for providing accounting services to the corporation (these qualified as organizational expenditures). The accounting services are valued at $30,800. (Negative amounts should be indicated by a minus sign. Leave no answer blank. Enter zero if applicable.) a. What amount of income gain or loss does Sam realize on the formation of the corporation? What amount, if any, does he recognize? Income, gain or loss realized $ 49,280 Income, gain or loss recognized b. What is Sam's tax basis in the stock he receives in return for his contribution of property to the corporation? Tax basis c. What amount of income gain or loss does Devon realize on the formation of the corporation? What amount, if any, does he recognize? Income, gain or loss realized Income, gain or loss recognized d. What is Devon's tax basis in the stock he receives in return for his contribution of services to the corporation? Tax basis Assume Devon received 25 percent of the stock in the corporation in return for his services. e. What amount of gain or loss does Sam recognize on the formation of the corporation? Answer is complete but not entirely correct. Gain or loss recognized $ 46,200 Assume Devon received 25 percent of the stock in the corporation in return for his services. f. What is Sam's tax basis in the stock he receives in return for his contribution of property to the corporation? Answer is complete but not entirely correct. Tax basis $ 69,300 8 Assume Devon received 25 percent of the stock in the corporation in return for his services. g. What amount of income gain or loss does Devon recognize on the formation of the corporation? Answer is complete but not entirely correct. Income, gain or loss recognized 24 7,700 Assume Devon received 25 percent of the stock in the corporation in return for his services. h. What is Devon's tax basis in the stock he receives in return for his contribution of services to the corporation? Answer is complete but not entirely correct. Tax basis 23,100