A city contributes $500,000 to a corporation as an inducement to locate in the city....
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Accounting
A city contributes $500,000 to a corporation as an inducement to locate in the city. Within the next 12 months, the corporation uses the money to purchase property. The corporation has income of $500,000 and must reduce its tax basis in the property by the same amount. True or False? Please explain.
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