Your clients, Lisa and Matthew, are planning to form Lima Corporation. Lisa will contribute $50,000 cash to Lima for 50 shares of its stock. Matthew will contribute land having a $35,000 adjusted basis and a $50,000 FMV for 50 shares of Lima stock. Lima will borrow additional capital from a bank and then will subdivide and sell the land. Prepare a memorandum for your tax manager outlining the tax treatment of the corporate forma-tion. In your memorandum, compare tax and financial accounting for this transaction. References: IRC Sec. 351 Accounting Standards Codification (ASC) 845 (Nonmonetary Transactions), formerly APB No. 29