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Yvonne and Simon form Ion Corporation. Yvonne transfers equipment (basis of $471,400 and fair market value of $707,100). Simon invests $565,680 of cash. They each
Yvonne and Simon form Ion Corporation. Yvonne transfers equipment (basis of $471,400 and fair market value of $707,100). Simon invests $565,680 of cash. They each receive 100 shares in Ion Corporation, worth $565,680, but Yvonne also receives $141,420 of 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 $______ in the equipment. Yvonne has a basis of $_______ for her stock and Simon has a basis of______ $ for his stock.
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