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Foluso Adu transfers assets with a fair market value of $250,000 to a corporation in which he is the only shareholder. The assets have a
Foluso Adu transfers assets with a fair market value of $250,000 to a corporation in which he is the only shareholder. The assets have a cost of $160,000 and a UCC of $90,000. A transfer price of $90,000 is elected. As consideration, Foluso receives cash of $70,000 and shares with a fair market value and legal stated capital of $180,000. What is the reduction in paid up capital as a result of this transaction? $ 160,000 $ 110,000 $ 180,000 $ 20,000
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