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In the current year, Matt , Hank , and Fiona form Sirens Corporation. Matt contributes land ( a capital asset ) having a $ 6

In the current year, Matt, Hank, and Fiona form Sirens Corporation. Matt contributes land(a capital asset) having a $ 62 comma 500 FMV(fair market value) in exchange for 55 shares of Sirens stock. He purchased the land three years ago for $ 100 comma 000. Hank contributes machinery(Sec.1231 property purchased four years ago) having a $ 130 comma 000 adjusted basis and a $ 37 comma 500 FMV in exchange for 45 shares of Sirens stock. Fiona contributes services worth $ 25 comma 000 in exchange for 10 shares of Sirens stock.



 
 Required:
a. What is the amount of Matt's recognized gain or loss? 
 
Matt realizes a
and recognizes
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Required:
 
a.
What is the amount of Matt's recognized gain or loss?
b.
What is Matt's basis in his Sirens shares? When does his holding period begin?
c.
What is the amount of Hank's recognized gain or loss?
d.
What is Hank's basis in his Sirens shares? When does his holding period begin?
e.
How much income, if any, does Fiona recognize?
f.
What is Fiona's basis in her Sirens shares? When does her holding period begin?
g.
What is Sirens's basis in the land and the machinery? When does its holding period begin? How does Sirens treat the amount paid to Fiona for her services?
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