The installment obligation has a face amount of $250,000 and was acquired last year from
the sale of land held for investment purposes (adjusted basis of $140,000). As to these
transactions, provide the following information:
a. Mark’s recognized gain or loss.
a. For this situation,
Mark would have no recognized gain or loss
b. Mark’s basis in the Maple Corporation stock.
[$250,000 (FMV) - $60,000]
c. Maple Corporation’s basis in the installment obligation.
d. Gail’s recognized gain or loss.
Gail has no recognized gain or loss.
e. Gail’s basis in the maple Corporation stock.
[$150,000 (cash) + $125,000 (equipment) + $10,000 (patent)].
f. Maple Corporation’s basis in the equipment and the patent.
$125,000 basis for the equipment.
$10,000 basis for the patent.
g. How would your answers to the preceding questions change if Mark received common stock
and Gail received preferred stock?