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Aav Ao 21 DAE 1 Normal 1 No Spac... Heading 1 Heading 2 Title Subtitle Paragraph E Styles Robb is a shareholder in an S

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Aav Ao 21 DAE 1 Normal 1 No Spac... Heading 1 Heading 2 Title Subtitle Paragraph E Styles Robb is a shareholder in an S corporation that currently has 100 shareholders. They need to get a contribution ofadditional assets to secure a loan to continue their oper ations, Robb's Uncle Ben offers to contribute a castle and land worth $100,000 to the S Corp in exchange for 1% of the stock. The shares are value d at $100,000. Robb is concernedthey will lose their S Corp election if he takes his u ncle's offer, because the S Corp would have more than 100shareholders. What are t he fax consequences to Robb and Ben if they go through with this transaction

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