Connie and Doris form calendar year Wolf Corporation on January 1 of the current year through the following

transfers of property and services:

From Connie:

From Connie	Basis to Transfer	Fair market Value	Number of shares
Professional Services:	0	22000	22
Cash	3000	3000	3

From Doris	Basis	FMV	Number of Shares
Land( Held as future building site)	56,000	78,000	78
Assume the value of each share of Wolf Corporation stock is $1,000.

a.

How much income or gain, if any, must Connie recognize? What is its character if recognized?

b.

What basis will Connie have in her Wolf stock?

c.

What holding period does Connie take in the Wolf stock?

d.

Assuming the professional services qualify as organizational expenses and an appropriate

elections is made, how much can Wolf deduct in the current year?

e.

How much gain or loss does Doris recognize? What is its character if recognized?

f.

What basis will Doris have in the Wolf stock?

g.

What holding period will Doris have in the stock?

h.

What basis will Wolf Corporation have in the land?

i.

What holding period will Wolf have in the land?