Nashville donates land to Amazon Corporation as an inducement for Amazon to locate there. The land is worth $2 million. The city also donates $500,000 of cash to Amazon.

A. What amount of income, if any, must Amazon recognize as a result of the transfer of land and cash by Nashville?

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B. What basis will Amazon have in the land?

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C. If Amazon purchases property six months later with the $500,000 cash, what basis will it have in the property?

fair market value or adjusted value basis. you should know if you are a tax expert. please do not answer my question if you don't know how to properly solve it.