Reference no: EM132570098

The Stock of END Corp is owned 80% by Iron Corporation and 20% by Jane Brown. As of June 30, 2019, END 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

Iron Corporation acquired its stock in 1995 paying $27,000 for its stock and Brown acquired her stock in 2009 paying $23,000 for it. On June 30, 2019, END Corp. adopts a plan of liquidation and immediately distributes its assets to Iron Corporation and Brown. Iron Corporation receives the Cash, Equipment and the Land and Brown receives the Verizon stock.

Question 1: What is Iron Corporation's basis in the Land and Equipment it receives?