Yvonne and Simon form Ion Corporation. Yvonne transfers equipment (basis of $325,800 and fair market value of $488,700). Simon invests $390,960 of cash. They each receive 100 shares in Ion Corporation, worth $390,960, but Yvonne also receives $97,740 in cash from Ion. Required:
Calculate Ion Corporation's basis in the equipment and determine Yvonne and Simon's basis in the Ion stock.

Anew 2-lane road is needed in a part of town that is growing. at some point the road will need 4 lanes to handle the anticipated traffic. if the city's optimistic estimate of growth is used, the expansion will be needed in 4 years and has a probability of happening of 40%. for the most likely and pessimistic estimates, the expansion will be needed in 8 and 15 years respectively. the probability of the pessimistic estimate happening is 20%. the expansion will cost $ 4.2 million and the interest rate is 8%. what is the expected pw the expansion will cost?