57. Your client, Midwest Products Inc. (MPI), is a closely held, calendar-year, accrual-method corporation located in Fowlerville, Michigan. MPI has two operating divisions. One division manufactures lawn and garden furniture and decorative objects (furniture division), while the other division manufactures garden tools and hardware (tool division). MPI's single class of voting common stock is owned as follows: Shares Adjusted Basis FMV s2,00gooo 1,200,000 Iris Green Rose Ruby Lily White Totals 300 100 100 500 3,000,000 1,000,000 1,000,000 $5,000,000 800,000 $4,000,000 The three shareholders are unrelated. Outdoor Living Company (OLC), a publicly held, calendar-year corporation doing business in several midwestern states, has approached MPI about acquiring its furniture division. OLC has no interest in acquiring the tool division, however LC's management has several strong business reasons for the acquisition, the