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Three individuals form Moon Corporation with the following contributions: Chris, cash of $50,000 for 50 shares; Bill, land worth $20,000 (basis of $11,000) for 20
Three individuals form Moon Corporation with the following contributions: Chris, cash of $50,000 for 50 shares; Bill, land worth $20,000 (basis of $11,000) for 20 shares; and Rick, equipment worth $12,000 (basis of $4,000) for 12 shares and services worth $18,000 for 18 shares. What are the tax consequences for each person and the corporation?
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