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Abe transers land with a basis of $80,000 and a FMV of $280,000 to Red Corporation in exchange for 100% of Red Corporation stock. The
Abe transers land with a basis of $80,000 and a FMV of $280,000 to Red Corporation in exchange for 100% of Red Corporation stock. The land was subject to a liability of $125,000. What is Red Corporation's basis in the land?
$45,000 $80,000 $125,000 $280,000
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