Reference no: EM132570078

The Stock of OVER Corp is owned 40% by Steel Corporation, 40% by John Jones and 20% by Jill Greene. As of June 30, 2019, OVER Corp had the following assets:

                                    Adjusted Basis                      FMV

Cash                                    $ 20,000                      $ 20,000

Equipment                                    32,000                       60,000

Land                                              47,000                   40,000

Verizon stock                                      25,000                30,000

Steel Corporation acquired its stock in 1995 paying $27,000 for it, Jones acquired his stock in 1999 paying $60,000 for it and Greene acquired her stock in 2009 paying $23,000 for it. None of the assets of OVER Corp. had been acquired in the prior two years. On June 30, 2019, OVER Corp. adopts a plan of liquidation and immediately distributes its assets to Steel Corporation, Jones and Greene. Steel Corporation receives the Equipment, Jones receives the Cash and the Land and Greene receives the Verizon stock.

Question 1: What is Steel Corporation's basis in the Equipment it receives?