Mickey, Mickayla, and Taylor are starting a new business (MMT). To get the business started, Mickey is contributing $215,000 for a 40 percent ownership interest, Mickayla is contributing a building with a value of $215,000 and a tax basis of $153,750 for a 40 percent ownership interest, and Taylor is contributing legal services for a 20 percent ownership interest.
A. What amount of gain is each owner required to recognize under each of the following alternative situations? [Hint Look at IRC §351 and §721.] (Leave no answer blank. Enter zero if applicable.)