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Clifton Corporation acquired all of the outstanding Gillion stock on January 1 , Year 1 , for $ 7 , 9 2 3 , 0

Clifton Corporation acquired all of the outstanding Gillion stock on January 1, Year 1, for $7,923,000. The parties immediately elected to file consolidated Federal income tax returns. Gillion reported a Year 1 taxable loss of $1,188,450, but it generated $1,584,600 of taxable income in Year 2 and $792,300 in Year 3. Gillion paid a $396,150 dividend to Clifton in Year 2 and a $11,885 in Year 3.
Compute Clifton's stock basis in Gillion on the last day of each of the indicated tax years.
Year 1: $fill in the blank 1
Year 2: $fill in the blank 2
Year 3: $fill in the blank 3

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