Yvonne and Simon form Ion Corporation. Yvonne transfers equipment (basis of $457,400 and fair market value of $686,100). Simon invests $548,880 of cash. They each receive 100 shares in Ion Corporation, worth $548,880, but Yvonne also receives $137,220 in cash from Ion.

Calculate Ion Corporation's basis in the equipment and determine Yvonne and Simon's basis in the Ion stock.

Ion Corporation has a basis of $fill in the blank 1 in the equipment. Yvonne has a basis of $fill in the blank 2 for her stock and Simon has a basis of $fill in the blank 3 for his stock.