2) Binita is operating a sole proprietorship and decides to incorporate. On 1/1/23, she transferred the assets shown below to the corporation in exchange for 70% of the stock (70 shares). Her friend Lionel is joining her in business. On this same date, he provided $80,000 of legal services in exchange for 30% of the stock (30 shares) and $50,000 cash.

Binita's Assets Inventory (purchased 11/15/22) FMV = $48,000 Cost = $43,000 Land (purchased 11/22/12) FMV = $22,000 Cost = 20,000

(a.) Is this a Section 351 qualified transaction? Why or why not? (b.) How much, if any, recognized gain (loss) does Binita have? What is the character? (c.) How much, if any, recognized gain (loss) does Lionel have? What is the character? (d.) How much, if any, recognized gain (loss) does the corporation have? (e.) What is Binitas basis in her stock? When does her holding period start? (f.) What is the corporations basis in the land? When does the holding period begin?