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Required information [ The following information applies to the questions displayed below. ] Zhang incorporated her sole proprietorship by transferring inventory, a building, and land

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Required information
[The following information applies to the questions displayed below.]
Zhang incorporated her sole proprietorship by transferring inventory, a building, and land to the corporation in return for 100 percent of the corporation's stock. The property transferred to the corporation had the following fair market values and adjusted tax bases:
\table[[,,Adjusted Tax],[,FMV,Basis],[Inventory,$36,000,$18,000
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