question 3) and 4) 3. A, an individual, owns a widget business. A transfers this business to Newco in exchange for Newco stock worth $10 and 30-year bonds with a face and FMV of $90. How will the bonds be treated for tax purposes? 4. A, an individual, owns 100% of the common stock of X Co. A's basis in this stock is 25. X has current E&P of 100 and accumulated E&P of 40. a. X makes a distribution of $200 cash. What are the consequences of this distribution? b. Same as (a) except that instead of one distribution of $200, X makes four quarterly distributions of $50 each. These distributions occur on February 1, May 1, August 1 and November 1. Does this change your answer?

questions are based on US tax laws for corporate entities