1. A, an individual, transfers a tract of land with a basis of 80 and FMV of 100 to Newco in exchange for 100% of Newco's common stock.

What are all the tax consequences to all of the parties?

2. Same as 1, except that the land transferred by A has a basis of 100 and a FMV of 80.

3. (a) Same as 1 except that A also receives a 30 year Newco bond with a face and fair market value of 10. Would this change your answer?

(b) Same as (a) except that the bond is a note due in 4 years.