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?