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Could you please explain why this problem is true? Thank you Silver Corporation receives $1 million in cash from Madison County as an inducement to

Could you please explain why this problem is true? Thank you Silver Corporation receives $1 million in cash from Madison County as an inducement to expand its operations. Within one year, Silver spends $1.5 million to enlarge its existing plant. Silver Corporation's basis in the expansion is $500,000.

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