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.

9. If instead of the prior facts, Acq transfers to Shr Acq voting stock worth $35 and $65 in cash how much if any gain or loss does Shr recognize when Tar merges into Acq?

10. What is your reason for the answer to the previous question?

11.Using the facts where stock worth $35 and cash of $65 was transferred by Acq, what is Shr's basis in the Acq stock?

12 . What is Shr's holding period in the Acq stock that was worth $35 that it received in the transaction?