Leno Hardware is owned and operated as

a sole proprietorship by Larry Leno. The

location is excellent, and he is approached

by a buyer, Hard Bargains Inc., a national

chain of hardware stores. What are the tax

consequences in the following situations?

a.

Larry sells the store for cash.

b.

Larry sells the store for marketable stock

in Hard Bargains.

c.

Larry incorporates the store and

exchanges the stock for shares in Hard

Bargains.

d.

Same as (c), but Larry incorporated his

hardware store two years earlier.