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Problem - Clark and Hunt organized Jet Corp. with authorized voting common stock of $400,000. Clark contributed $60,000 cash. Both Clark and Hunt transferred other property in exchange for Jet stock as follows:
Adjusted Basis
Fair Market Value
Percentage of Jet Stock Acquired
Clark
$ 50,000
$100,000
40%
Hunt
120,000
240,000
60%
Required - What was Clark's basis in Jet stock?
a. $0
b. $100,000
c. $110,000
d. $160,000
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