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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
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.
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