Shr owns all the shares of Tar. Her basis in the Tar stock is $15, and her holding period is 2 years. Tar owns one asset, land with a fair market value of $100 in which Tars basis is $35. The land was acquired 5 years ago. Acq wants to acquire Tar. Tar merges into Acq, and Acq transfers $70 of Acq voting stock and $30 in cash to Shr.

1. What is Shrs adjusted basis in the Acq stock received from Tar?

2. What is Shr's holding period in the Acq received in the transaction?

3. What is Acqs adjusted basis and holding period in the land received from Tar? Acq's Adjusted basis is _____ Acq's holding period is ______

4. What if anything happens to Tars earnings and profits? [answer1]