In the current$$ year, Mick$,$ Jay$,$ and Lena form Apollo Corporation. Mick contributes land$($a capital$$ asset$)$ having a $ $100$ comma $000$ FMV$($fair market$$ value$)$ in exchange for $100$ shares of Apollo stock. He purchased the land three years ago for $ $125$ comma $000.$ Jay contributes machinery$($Sec$.1231$ property purchased four years$$ ago$)$ having a $ $75$ comma $000$ adjusted basis and a $ $60$ comma $000$ FMV in exchange for $60$ shares of Apollo stock. Lena contributes services worth $ $40$ comma $000$ in exchange for $40$ shares of Apollo stock.

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Part $1$

Requirement a$.$ What is the amount of Mick$\text{'}$s recognized gain or$$ loss?

Mick realizes a

and recognizes

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Requirements

a$.$

What is the amount of Mick$\text{'}$s recognized gain or$$ loss?

b$.$

What is Mick$\text{'}$s basis in his Apollo $$shares$?$ When does his holding period$$ begin?

c$.$

What is the amount of Jay$\text{'}$s recognized gain or$$ loss?

d$.$

What is Jay$\text{'}$s basis in his Apollo $$shares$?$ When does his holding period$$ begin?

e$.$

How much$$ income, if$$ any, does Lena $$recognize$?$

f$.$

What is Lena$\text{'}$s basis in her Apollo $$shares$?$ When does her holding period$$ begin?

g$.$

What is Apollo$\text{'}$s basis in the land and the$$ machinery? When does its holding period$$ begin? How does Apollo treat the amount paid to Lena for her$$ services?

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