Dan, a lawyer, owns real estate with a basis of $10,000 and a fair market value of $18,000. Elite has outstanding 100 shares, all held by Mr.

Dan, a lawyer, owns real estate with a basis of $10,000 and a fair market value of $18,000. Elite has outstanding 100 shares, all held by Mr.Able. Elite issues 400 additional shared of its common stock (having a fair market value of $18,000) to Dan in exchange for his property worth $18,000Assume that in addition to the 400 shares received by Dan for his real estat, that he received and additional 50 shares in paymenr for certain legal services rendered by him in connection with the incorporation of Elite. As a result of the receipt of these shares for services A. All 450 shares received by Dan are currently taxableB. All 450 shares received by Dan are non-taxable since shares received for services are counted in determining control if significant acounts of property are also transferred to the corporation by the serice provider in the same transactionc. The 400 shares received for the real estate are non-taxable and the 50 shares received for services are currently taxable D. None of the above If Dan held the real estate for 4 years, how long will he be deemed to have held his newly acquried Elite shares referable to the real estate?

Dan, a lawyer, owns real estate with a basis of $10,000 and a fair market value of$18,000. Elite has outstanding 100 shares, all held by Mr.Able. Elite issues 400additional shared of its common...