A, an individual, owns all 100 shares of X Co. A's basis in these shares is $1 per share ($100 total).

a) A transfers 10 shares to X in exchange for cash of 10. How will this transaction be treated for tax purposes?

b) Suppose instead that there are 2 shareholders, A and B. Each owns 50 shares of X Co. A transfers all 50 shares to X in exchange for cash of 50. How will this transaction be treated?

c) Same as (b) except that A and B are husband and wife. Would this change your answer?