Alice and Bart form AB Corp. Alice transfers a machine used in her business ($90,000 of depreciation taken in prior years) worth $420,000 (basis of $300,000) in return for 70 shares in AB Corp. Bart transfers land used in his business (held as an investment for 3 years) worth $165,000 (basis of $100,000) and performs managerial services worth $15,000, in return for 30 shares in AB Corp.