3. Finn and Bianca form Spirit Inc., a C-Corporation. Finn transfers land (FMV $150,000 and adjusted basis of 60,000) and agrees to provide services to manage the business after it opens worth $100,000 for 50% of the stock in the corporation. Bianca transfers equipment (FMV 260,000 adjusted basis of $85,000 for 50% of the stock in the corporation and $10,000 cash. The value of the stock received is $250,000 for each Finn and Bianca. (7 points)

a. Will the transfer qualify under 351 as a tax-free transfer? Explain.

b. What are the tax consequences to Finn and Bianca including the basis in the stock they received?

c. What is Spirit Inc.s basis in the land and equipment received?

d. Would your answers change to question b if Bianca formed Spirit 3 years ago and Finn is making his contribution this year in 2019?