Question: Does Sec. 351 apply to property transfers to an existing corporation? Suppose Carl and Lynn each own 50 shares of North Corporation stock. Carl transfers

Does Sec. 351 apply to property transfers to an existing corporation? Suppose Carl and Lynn each own 50 shares of North Corporation stock. Carl transfers property worth $50,000 to North for an additional 25 shares. Does Sec. 351 apply? Explain why or why not. If not, what can be done to qualify the transaction for Sec. 351 treatment?

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