Dennis contributed business assets to a new business in exchange for stock in the company. The exchange did not qualify as a nontaxable exchange. The fair market value of these assets was $287,000 on the contribution date. Dennis's original basis in the assets he contributed was $143,000, and the accumulated depreciation on the assets was $78,000.
a) What is the business's basis in the assets it received from Dennis?
b) What would be the business's basis if the transaction qualified as a non- taxable exchange?