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When a shareholder contributes property to obtain stock, what will determine the valuation of the investment, when the total shares owned by contributors of cash

When a shareholder contributes property to obtain stock, what will determine the valuation of the investment, when the total shares owned by contributors of cash and property is greater than 80%? I. The adjusted basis of the property. II. The fair market value of the property.

I only The lesser of I and II. The greater of I and II. II only

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