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There is no taxable income to Larry for the contribution of cash. Taxable income ( loss ) recognized by Morgan cannot be determined. Even though

There is no taxable income to Larry for the contribution of cash.

Taxable income

(

loss

)

recognized by Morgan cannot be determined.

Even though

the fair value of the land is higher than Morgan's basis in the land by $

150, 000,

taxable income is recognized upon the incorporation.

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