Yang, Jane, and Li incorporated YJL Corp.
Yang transferred equipment (FMV = $60,000, basis = $55,000) in exchange for 25% of YJL Corp.’s stock (FMV = $50,000) and $10,000 cash.
Jane transferred land (FMV = $110,000; basis = $80,000) in exchange for 50% of YJL Corp.’s stock (FMV = $100,000) and $10,000 cash.
Li contributed $50,000 cash in exchange for 25% of YJL Corp.’s stock (FMV = $50,000).
Assume YJL Corp. is a controlled corporation of Yang, Jane, and Li.
What is Jane’s basis in YJL Corp. stock?
and
What is YJL Corp’s basis in the land?