Ramona and Hermione formed Wiley Corporation on January 2. Ramona contributed cash of $260,000 in return for 50 percent of the corporation's stock. Hermione contributed a building and land with the following fair market values and adjusted tax bases in return for 50 percent of the corporation's stock: Adjusted Tax Basis FMV Building Land Total $ 97,500 227,500 $ 26,000 104,000 $ 325,000 $ 130,000 To equalize the exchange, Wiley Corporation paid Hermione $65,000 in addition to her stock.