Now assume Aaliyah, Inc. purchased the assets of Steph, Inc. for the same consideration as stated. Aaliyah simultaneously contributed the assets acquired to Aaliyah II, Inc. On July 1, 2019 Aaliyah, Inc. Purchased the assets of Steph, Inc. directly from Steph’s . Aaliyah consummated the purchase using cash of $20,000,000 and property with an adjusted basis of $500,000 and a Fair Market value of $3,000,000. 

At the time of the acquisition, Steph had the following assets: 

                                                                Adjusted Basis               Fair market Value 

Accounts Receivable                               $ 400,000                             $ 300,000 

Marketable Securities                             $ 300,000                             $ 800,000 

Loan Receivable                                      $ 200,000                             $ 100,000 

US Government Securities                   $ 500,000                              $ 500,000 

Inventory                                             $ 1,000,000                           $ 2,000,000 

Furniture/Fixtures                                 $          - 0 -                          $ 1,100,000 

Building                                                  $ 600,000                            $ 4,000,000 

Covenant Not to Compete                  $        - 0 -                            $ 1,200,000 

Totals                                                   $3,000,000                           $ 10,000,000 

Aaliyah’s tax basis in Aaliyah II is equal to? ________________________________