current year,

Dick

,

Evan

, and

Fran

form

Triton

Corporation.

Dick

contributes land (a capital asset) having a

$ 50 comma 000

FMV (fair market value) in exchange for

50

shares of

Triton

stock. He purchased the land three years ago for

$ 60 comma 000

.

Evan

contributes machinery (Sec. 1231 property purchased four years ago) having a

$ 45 comma 000

adjusted basis and a

$ 30 comma 000

FMV in exchange for

30

shares of

Triton

stock.

Fran

contributes services worth

$ 20 comma 000

in exchange for

20

shares of

Triton

stock.