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In return for legal services worth $ 6 0 , 0 0 0 rendered incident to its formation, Crimson Corporation issues stock to Greta, an

In return for legal services worth $

60, 000

rendered incident to its formation, Crimson Corporation issues stock to Greta, an attorney. Crimson cannot immediately deduct the value of any of this stock but instead must capitalize it as an organizational expenditure.

True

False

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