Question: What is the rationale behind a corporation's increasing its basis in property received in a Section 351 transaction for the gain recognized by the transferor

What is the rationale behind a corporation's increasing its basis in property received in a Section 351 transaction for the gain recognized by the transferor shareholder?

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What is the rationale behind a corporations increasing its basis in property received in a Section 351 transaction for the gain recognized by the transferor shareholder? AppendixLO1

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