On March 1 of the current year, Alice, Bob, Carla, and Dick form Bear Corporation and transfer the following items: Property Transferred Transferor Alice Bob Carla Dick Number of Basis to Common Asset Transferor FMV Shares Issued Land $12,000 $30,000 Building 38,000 70,000 400 Mortgage on the land and building 60,000 60,000 Equipment 25,000 40,000 300 Van 15,000 10,000 50 Accounting services 10,000 100 Alice purchased the land and building several years ago for $12,000 and $50,000, re- spectively. Alice has claimed straight-line depreciation on the building. Bob also receives a Bear note for $10,000 due in three years. The note bears interest at the prevailing mar- ket rate. Bob purchased the equipment three years ago for $50,000. Carla also receives $5,000 cash. Carla purchased the van two years ago for $20,000. a. Does the transaction satisfy the requirements of Sec. 351? b. What are the amount and character of the gains or losses recognized by Alice, Bob, Carla, Dick, and Bear? c. What is each shareholder's basis in his or her Bear stock? When does the holding pe- riod for the stock begin? d. What is Bear's basis in its property and services? When does the holding period for each property begin?