Dennis contributed business assets to a new business in exchange for stock in the company. the exchange did not qualify as a tax-deferred exchange. the fair market value of these assets was $370,000 on the contribution date. dennis’s original basis in the assets he contributed was $218,000, and the accumulated depreciation on the assets was $136,500. what is the business's basis in the assets it received from dennis? what would be the business's basis if the transaction qualified as a tax-deferred exchange?

scenario: hawaii and south carolina are trading partners. hawaii has an absolute advantage in the production of both coffee and tea. the opportunity cost of producing 1 pound of tea in hawaii is 2 pounds of coffee, and the opportunity cost of producing 1 pound of tea in south carolina is 1/3 pound of coffee. which of the following statements is true? a. south carolina should specialize in the production of both tea and coffee. b. hawaii should specialize in the production of tea, whereas south carolina should specialize in the production of coffee. c. hawaii should specialize in the production of coffee, whereas south carolina should specialize in the production of tea. d. hawaii should specialize in the production of both tea and coffee.