3. A starts out with a parcel of land held for investment worth $900 with and adjusted basis of $600 and receives a 50% interest in X Corp., a newly formed corporation that obtains the property. B starts out with $500, which he transfers to X Corp and receives a 50% interest in X Corp. Consider the tax consequences of the incorporation under the following scenarios. Please provide primary code section citations for your support and show your calculations.

a. What if immediately before the transfer of the property to X Corp., A borrowed $400 from a lender using his property as collateral?

b. Instead, what if As property had a basis of $300 and was subject to a liability of $400 incurred when A purchased the property?

c. Instead, what if As property had a basis of $1250, a FMV of $900 and was subject to a liability of $400 incurred when A purchased the property?

d. What if instead A contributed two parcels of land, one subject to a $400 liability with a basis of $200 and a FMV of $700, and another with a basis of $100 and a FMV of $200?

e. What if A and B each contribute their own note payable for $400 in addition to the other consideration under the facts as described in subpart b?