On July 1, 2012, Grey formed Arucaria Corporation. On that same date, Grey paid $100,000 cash...
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On July 1, 2012, Grey formed Arucaria Corporation. On that same date, Grey paid $100,000 cash and transferred property with an adjusted basis of $50,000 to Arucaria in exchange for 3,000 shares of the corporation's common stock. The property transferred had a fair market value of $85,000 on the date of the transfer. Arucaria Corporation had no other shares of common stock outstanding on July 1, 2012. As a result of this transaction, Grey's basis in the stock and Arucaria Corporation's basis in the property (other than the cash), respectively, are? On July 1, 2012, Grey formed Arucaria Corporation. On that same date, Grey paid $100,000 cash and transferred property with an adjusted basis of $50,000 to Arucaria in exchange for 3,000 shares of the corporation's common stock. The property transferred had a fair market value of $85,000 on the date of the transfer. Arucaria Corporation had no other shares of common stock outstanding on July 1, 2012. As a result of this transaction, Grey's basis in the stock and Arucaria Corporation's basis in the property (other than the cash), respectively, are?
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