In the current year,

MitchMitch,

TimTim,

and

KeriKeri

form

HadesHades

Corporation.

MitchMitch

contributes land (a capital asset) having a

$ 75 comma 000$75,000

FMV (fair market value) in exchange for

150150

shares of

HadesHades

stock. He purchased the land three years ago for

$ 110 comma 000$110,000.

TimTim

contributes machinery (Sec. 1231 property purchased four years ago) having a

$ 75 comma 000$75,000

adjusted basis and a

$ 45 comma 000$45,000

FMV in exchange for

120120

shares of

HadesHades

stock.

KeriKeri

contributes services worth

$ 30 comma 000$30,000

in exchange for

3030

shares of

HadesHades

stock.

Read the requirements.

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Part 1

Requirement a. What is the amount of

MitchMitch's

recognized gain or loss?

Mitch realizes a

and recognizes

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Requirements

a.	What is the amount of MitchMitch's recognized gain or loss?
b.	What is MitchMitch's basis in his HadesHades shares? When does his holding period begin?
c.	What is the amount of TimTim's recognized gain or loss?
d.	What is TimTim's basis in his HadesHades shares? When does his holding period begin?
e.	How much income, if any, does KeriKeri recognize?
f.	What is KeriKeri's basis in her HadesHades shares? When does her holding period begin?
g.	What is HadesHades's basis in the land and the machinery? When does its holding period begin? How does HadesHades treat the amount paid to KeriKeri for her services?