In the current year, Louis, Stu, and Cyn form Greek Corporation. Louis contributes land (a capital asset) having a $75,000 FMV (fair market value) in exchange for 200 shares of Greek stock. He purchased the land three years ago for $110,000. Stu contributes machinery (Sec. 1231 property purchased four years ago) having a $75,000 adjusted basis and a $45,000 FMV in exchange for 120 shares of Greek stock. Cyn contributes services worth $30,000

in exchange for 80 shares of Greek stock.

1.What is the amount of Louis's recognized gain or loss?

2. What is Louis's basis in his Greek shares? When does his holding period begin?

3. What is the amount of Stu's recognized gain or loss?

4. What is Stu's basis in his Greek shares? When does his holding period begin?

5. How much income, if any, does Cyn recognize?

6. What is Cyn's basis in her Greek shares? When does her holding period begin?

7. What is Greek's basis in the land and the machinery? When does its holding period begin? How does Greek treat the amount paid to Cyn for her services?