entity, and entity. of special- It in Z diary Ar Landman has spent the last 10 years developing small commercial strip malls and has been very successful. He residential property in a high-traffic area, rezones the property, and then sells it to a contractor who builds the pays a plaza and sells it to investors. Mr. Landman has often been hired to manage the commercial plazas for a fee. Now Mr. nerships with builders and/or investors to build commercial properties and keep them as long-term investments. Landman wants to become a real estate baron. Rather than just developing the plazas for resale, he wants to form part- He has found two properties suitable for development and made offers to the current owners to purchase these January 1, Year 2. The offers are conditional upon arranging suitable financing for the acquisition. Mr. Landman intends to set up two separate companies to buy, develop, and hold the properties. Elgin Company $2,800,000. Mr. Landman's holding company, (Holdco, will invest $1,200,000 in