In 2018, Somer, Mike, and Paul form Lancer Corporation.  Som…

In 2018, Somer, Mike, and Paul form Lancer Corporation.  Somer contributes land having a $80,000 FMV in exchange for 40 shares of Lancer stock.  She purchased the land in 2012 for $60,000.  Mike contributes machinery having a $45,000 adjusted basis and a $30,000 FMV in exchange for 30 shares of Lancer stock.  Mike purchased the machinery in 2017.  Paul contributes services worth $20,000 in exchange for 20 shares of Lancer stock.  Answer the following 12 questions below. 10.  When does Lancer Corporation’s holding period begin for the land?

A shareholder classifies a distribution for tax purposes as:…

A shareholder classifies a distribution for tax purposes as: (1) _________________ to the extent of corporate Earnings & Profits (E&P), (2) _____________________ to the extent of the shareholder’s stock basis, and (3) _____________________ for the remaining that exceeds shareholder’s stock basis.

In 2018, Somer, Mike, and Paul form Lancer Corporation.  Som…

In 2018, Somer, Mike, and Paul form Lancer Corporation.  Somer contributes land having a $80,000 FMV in exchange for 40 shares of Lancer stock.  She purchased the land in 2012 for $60,000.  Mike contributes machinery having a $45,000 adjusted basis and a $30,000 FMV in exchange for 30 shares of Lancer stock.  Mike purchased the machinery in 2017.  Paul contributes services worth $20,000 in exchange for 20 shares of Lancer stock.  Answer the following 12 questions below. 10.  When does Lancer Corporation’s holding period begin for the land?