3.The State of Maine gives BMWow Corp a piece of land to encourage it to build a factory in Maine. The state bought the property in a condemnation proceeding for $750,000 which is its fair market value. The State also gives the Corp $100,000 to use as it wishes. BMWow Corp takes the land and the cash and uses the cash to buy machinery for $100,000:

a.Does the Corp have income and if so how much?

b.What is the Corp's adjusted basis in the land?

c.What is the basis in the machinery?

is this capital contribution also?