Yvonne and Simon form Ion Corporation. Yvonne transfers equipment (basis of $279,600 and fair market value of $419,400). Simon invests $335,520 of cash. They each receive 100 shares in Ion Corporation, worth $335,520, but Yvonne also receives $83,880 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 $ in the equipment. Yvonne has a basis of $ for her stock and Simon has a basis of $ for his stock.