Terry and Elsa Form Egret Company by Contributing Assets of Their

Terry and Elsa form Egret Company by contributing assets of their respective businesses.Terry contributes $5,000 cash and land with a fair market value of $35,000 (adjusted basis of $20,000)for a 40% interest.Elsa will contribute services in organizing the startup of the company worth $20,000 and contributes $15,000 cash and inventory worth $75,000 (adjusted basis of $80,000)for a 60% interest.Determine the amount of gain or loss recognized on the transfer of the assets,each owner's basis in the ownership interest,and Egret Company's basis in the assets received for each of the following entities.
a.Egret Company is a partnership.

b.Egret Company is a corporation.
a.Egret Company is a partnership.
b.Egret Company is a corporation.