16. Suppose A transfers land worth $85 with an adjusted basis of $10 in exchange for 85% of the stock of Dog Corp. B provides services to Dog Corp in exchange for the remaining 15% of the stock.

a) Is A taxed on the transfer of the land?

b) Is B taxed on the receipt of stock for services?

c) If As land were worth $79 and she transferred it for 79% of the stock and Bs services were worth $21 so he received 21% of the stock is A taxed?

d) Suppose Bs services were worth $19 so he also transferred $2 in cash to get the 21% of the stock. Does your answer to the prior question change? (See the bottom of page 7)

e) Suppose As land is worth $100,000 (adjusted basis is $500). Dog Corp wants to acquire the land. A transfers the land in exchange for $100,000 worth of stock which is 2% of Dog Corp. Canine owns 90% of Dog and agrees to transfer $1 in exchange for 1 additional share of Dog. Is A taxed on the transfer of the land?