PROBLEM 1 Except as otherwise stated, Albert starts out with non-depreciable real property (a capital asset) worth $100 (adjusted basis $40) and ends up with cash of $50 plus a 50% interest (worth $50) in X Corporation, a newly organized corporation that owns the property. For each part, determine the following: i. Albert's amount realized ii. Albert's gain or loss realized iii. Albert's gain or loss recognized in the character thereof iv. Albert's basis in the X stock received v. Albert's holding period for the Xstock received (tack or not?) vi. X corporation's basis in the property received vii. X corporation's holding period for the property received (text or not?) viii. The amount and character of X's gain if X immediately sells the property for $100 (a) Albert transfers the property to X in exchange for all of X's stock. Shortly thereaer, Albert sells half of his X stock to Barbara for $50 and either i. The stock sale is a separate event from the prior incorporation transaction; or ii. The stock sale is an integal part of the incorporation plan. How would the result be different if the basis for Albert's property were $200 rather than $40? (b) Albert sells a half interest in the property to Barbara for $50. Albert and Barbara then jointly transfer their property interest to X Corporation in exchange for X's stock. (c) Albert and Barbara jointly organize X Corporation. Albert transfers his property to X in exchange for $50 in cash and half of X Corporation's stock. Barbara transfers $50 in cash to X in exchange for the other half of X's stock. {d} What resulted in (c) above if Albert receives $50 in ve-year notes instead of cash? As some the notes are debt and not equity. (e) Albert borrows $50 'om Larry (nonrecourse) on the security of the property. Shortly thereafter, Albert transfers the property to X Corporation (subject to this debt} in exchange for half of X's stock, and Barbara transfers $50 in cash to X in exchange for the other half of X's stock. X subsequently uses the $50 cash to repay Larry. (f) Same as (e) above, but Albert also contributes Albert's note for $10 to X Corporation