Rose bought a piece of land 3 years ago for $1. Today the fair market value of the land is $100 and she transfers it to Flower Inc in exchange for all 100 shares of Flowers voting common stock worth $100. There are no other shareholders

Does Rose recognize gain on the transfer? NO

What is Roses basis in the stock? $1

What is Roses holding period in the stock? 3 years

What is Flowers basis in the land? $1

What is Flowers holding period for the land? 3 years

Using the facts of the previous question (a) except that Rose also received from Flower $5 in cash (Flower borrowed it from a bank) in addition to the stock, so the stock was worth $95:

How much if any gain does Rose recognize?

What is Roses basis in Flower?

What is Flowers basis and holding period in the land?