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

a) Does Rose recognize gain on the transfer?

b) What is Rose's basis in the stock?

c) What is Rose's holding period in the stock?

d) What is Flower's basis in the land?

e) What is Flower's holding period for the land?

f) Would your answer to parts (b) and (d) change (and if so how) if the fair market value of the land were $50 and Rose's basis was $75?

g) Would the answer to part (c) change if instead of transferring land Rose transferred inventory?