Section 351 contribution question

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If a C corp gets land property from a non-shareholder to induce business activity how is the land treated on the balance sheet of the corporation?

I know for a fact the land will not be considered income or a gain of any kind to the corporation. However, such contributed property is always given a zero basis on the balance sheet so there can be no depreciation expense used in the future. Since land is not depreciable would the land still be carried at zero on the balance sheet?

I wonder if it would be carried at FMV since they would have to pay property tax on it and their carrying value on the financial statements would need to match the value for tax purposes in subsequent years.

In other words if the land is carried at zero and taxed at some value there would be inconsistency in the financial statements in terms of the balance sheet and the tax expense on the income statement.

How does it work with land?
 

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