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Ally exchanges land with a basis of $50,000 and a current market value of $100,000. She receives 90% of the stock and $20,000 in cash.
Ally exchanges land with a basis of $50,000 and a current market value of $100,000. She receives 90% of the stock and $20,000 in cash.
What is Allys basis in her stock?
What is the corporate basis in the land?
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