U Question 3 20 pts 3.Individual Chertarg owns all the stock of Targ. Her basis in the Targ stock is $5, and her holding period is 3 years. Targ owns one asset, land with a fair market value of $100 in which Targ's basis is $20. Corp Aca wants to acquire Tar. Acq transfers Tar merges $90 of Acq voting stock and $10 in cash to Targ. Targ transfers the stock and cash to Chertarg and merges into Acq. a) What is Acq's adjusted basis in the shares it issues to acquire Targ? b) 3. How much gain or loss does Acq recognize on the transfer of its shares? c) How much gain or loss does Targ recognize when it receives the Acq shares and cash? d) How much gain or loss does Chertarg recognize on receipt of the Acq stock and cash? e) Does Targ recognize gain or loss when it transfers the Acq stock and cash to Chertarg as part of the merger? If so, how much? A) What is Chertarg's adjusted basis in the Acq stock received? g) What is Chertarg's holding period in the Acq shares? h) What is Acq's adjusted basis and holding period in the land? i) What if anything happens to Targ's earnings and profits? If instead of the prior facts, Acq transfers to Chertarg Acq voting stock worth $38 and $62 in cash does Chertarg recognize gain or loss when Targ merges into Acq and if so how much is it? Briefly explain why or why not. HTML Editor O