F and G formed a corporation on March 1 this year.F transferred equipment worth $40,000 (basis $15,000) in exchange for 40 shares of stock, and performed services worth $10,000 in exchange for 10 shares of stock.In exchange for 50 shares of stock, G contributed land worth $70,000 (basis $9,000) subject to a mortgage of $20,000, which the corporation assumed.If G should sell his stock, the holding period will

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Quizplus · Accepted Answer

BThe holding period for G's stock includes the holding period of the land because the land is a capital asset, and when such an asset is exchanged for corporate stock, the holding period of the asset is tacked onto the holding period of the stock. Additionally, the holding period begins on the date of the transfer, which is the day G contributed the land to the corporation.

F and G Formed a Corporation on March 1 This