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Multiple Choice

$4$ points

Rhonda and Marta form Blue Corporation. Rhonda transfers land $($basis of $$55,000$ and fair market value of $$180,000)$ for $50$ shares plus $$20,000$ cash. Marta transfers $$160,000$ cash for $50$ shares in Blue Corporation.

Which of the following statement is true?

Rhonda's basis in the Blue Corporation stock is $$55,000.$

Blue Corporation's basis in the land is $$180,000.$

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$5$

Clear my selection

$6$