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Fact Pattern.
On January 1 of Year one Ant and Bee formed X Corporation. On that date Ant contributed land with a FMV of $10,000 and an adjusted basis to A of $3,500. B contributed two capital assets: CA #1 (FMV $6,000, AB $8,000), and CA#2, FMV $6,000, AB $5,000), B also contributed a liability (which had a legitimate business purpose) of $1,000 which was assumed by X. A received 100 shares in exchange and B received 100 shares and $1,000 cash in the exchange.
DURING YEAR 1
DURING YEAR 2
DURING YEAR 3
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