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RECOMMENDED!!ACC 407-Individuals Jimmy and Ellen form JE Corporation

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Individuals Jimmy and Ellen form JE Corporation. Ellen transfers land and a building with a $175,000 adjusted basis and $200,000 FMV in exchange for 50% of the stock of the JE Corporation and a $20,000 note. Jimmy transfers cash of $200,000 for 50% of the stock and a $20,000 note. The transaction meets the terms of Sec. 351. The JE stock has a fair market value of $360,000. What is:(a) the amount of Ellen’s gain or loss recognized on the transfer? (Show calculations)(b) the basis of her stock in JE Corporation? (Show calculations)(c) JE Corporation’s basis in the land and building (together) transferred by Ellen? (Show calculations)

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