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55. Michelle Ellis transfers land and inventory to Verve Corporation in return for 100 percent of its stock. The land has a fair market
55. Michelle Ellis transfers land and inventory to Verve Corporation in return for 100 percent of its stock. The land has a fair market value of $200,000 and an adjusted basis of $90,000. The inventory has a fair market value of $50,000 and an adjusted basis $60,000. Michelle receives stock worth $200,000 and cash of $50,000. What are the tax consequences to Michelle?
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