Tax Drill - Basis Adjustment In a transaction qualifying under $ 351, Kelcy transfers the following assets to Connor Corporation in exchange for all of its stock equipment (basis $200,000; fair market value $180,000), land (basis $65,000; fair market value $80,000) and machinery (bass $100,000; fair market value $95,000). The alternative approach is not elected. Connor Corporation has a basis of: $ x in the equipment, 65,000 in the land, and the machinery, Kelcy recognizes no gain or loss on the transfer. Kelcy's has a basis of s 365,000 for his stod