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Question: Miley will contribute $1,000,000 cash to the venture and McLovin will contribute a building that has a $1,000,000 fair market value and adjusted basis of $400,000. Initially Miley thinks she wants to pay McLovin's $500,000 for a 50% interest in the building so she owns half of the building before they form the corporation.

- They want to know whether it would be better to operate as a C-Corporation or S-Corporation.

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