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Exercise $12-5($L$0.2,3)$

Yvonne and Simon form Ion Corporation. Yvonne transfers equipment with a basis of $$110,000$ and fair market value of $$165,000.$ Simon invests $$130,000$ of cash. They each receive $100$ shares in Ion Corporation worth $$130,000,$ but Yvonne also receives $$35,000$ 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 $ basis of $ for his stock. for her stock and Simon has a