Tom and Gail form Owl Corporation with the following

27. Tom and Gail form Owl Corporation with the following consideration:Consideration Transferred Basis to Transferor Fair Market Value Number of Shares IssuedFrom Tom— Cash $ 50,000 $ 50,000 Installment note 240,000 350,000 40From Gail— Inventory 60,000 50,000 Equipment 125,000 250,000 Patentable invention 15,000 300,000 60The installment note has a face amount of $350,000 and was acquired last year from the sale of land held for investment purposes (adjusted basis of $240,000). As to these transactions, provide the following information:o a.Tom’s recognized gain or loss.o b.Tom’s basis in the Owl Corporation stock.o c.Owl Corporation’s basis in the installment note.o d.Gail’s recognized gain or loss.o e.Gail’s basis in the Owl Corporation stock.o f.Owl Corporation’s basis in the inventory, equipment, and the patentable invention.o g.How would your answers to the preceding questions change if Tom received common stock and Gail received preferred stock?o h.How would your answers change if Gail was a partnership?38. Allie forms Broadbill Corporation by transferring land (basis of $125,000, fair market value of $775,000), which is subject to a mortgage of $375,000. One month prior to incorporating Broadbill, Allie borrows $100,000 for personal reasons and gives the lender a second mortgage on the land. Broadbill Corporation issues stock worth $300,000 to Allie and assumes the mortgages on the land.o a.What are the tax consequences to Allie and to Broadbill Corporation?o b.How would the tax consequences to Allie differ if she had not borrowed the $100,000?