A, B and C form X Corporation by transferring the following assets, each of which has been held long-term:

Transferor Asset Adjusted Book FMV

A Equipment (all 1245 gain) $15,000 $22,000

B Inventory 7,000 20,000

B Land 25,000 10,000

C Land 20,000 50,000

In exchange, A receives 15 shares of X common stock (value-$15,000), $2,000 cash and 100 shares of X preferred stock (value - $5,000), B receives 15 shares of X common stock (value - $15,000) and $15,000 cash, and C receives 10 shares of X common stock (value-$10,000), $5,000 cash and X's note for $35,000, payable in two years. None of the transferors is a "dealer" in real estate. Assume that the preferred stock issued to A is not "nonqualified preferred stock.

(a)What are the tax consequences (gain or loss realized and recognized, basis and holding period) of the transfers described above to each shareholder and to X Corporation?

(b) What result to C in (a), above, if instead of land, C transferred depreciable equipment with the same AB and FMV as the land and an original cost to C of $50,000? See 453(i).