Question 1: In year 1, Caroline transfers investment land (basis of $1,290,000 and a FMV of $1,650,000) in exchange for 80% of the X CG Corporation stock worth $1,200,000 and also receives $100,000 cash and a $350,000 installment note. Caroline will receive a $350,000 principal payment on the note in year 4 (assume the interest is at market rate and accounted for separately). How much gain does Caroline recognize in the first year?
Question 2: Pipkin Corporation owns 20% of the stock of Alpha Corporation and 18% of the stock of Beta Corporation. Alpha and Beta Corporation are both U.S. corporations. Pipkin has gross receipts from operations of $90,000 and operating expenses of $98,000. Pipkin Corporation received $20,000 dividend income from Alpha Corporation. Pipkin also received $20,000 dividend income from Beta Corporation. What is Pipkin Corporation's taxable income?
Question 3: In year 1, Zach transfers investment land (basis of $250,000 and a FMV of $400,000) in exchange for 80% of the ZZ Corporation stock worth $300,000 and also receives a $100,000 installment note. Zach will receive a $100,000 principal payment on the note in year 3 (assume the interest is at market rate and accounted for separately). What is Zach's stock basis in year 1?