Stevie Walter has owned all 200 shares of Lenz Corporation's

stock for the past six years. This year, Mark Stones

contributes property with a $100,000 basis and a $160,000

FMV for 160 newly issued Lance shares. At the same time,

Stevie contributes $30,000 in cash for 30 newly issued Lenz

shares.

Answer the following questions assuming Code section 351

is satisfied at all relevant times:

What is each shareholder's recognized gain?

What is each shareholder's basis for his or her stock?

What is each shareholder's holding period for his or

her stock?

Does Lenz Corporation recognize gain when it issues

its stock?

What is Lenz Corporation's basis for the property

received from Mark?

What is Lenz Corporation's holding period for the

property received from Mark?