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James Russell is a 50% shareholder in a landscaping corporation, LC Corp. He has just incorporated his own wholly-owned landscaping business, Greenscape Inc. The other

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James Russell is a 50% shareholder in a landscaping corporation, LC Corp. He has just incorporated his own wholly-owned landscaping business, Greenscape Inc. The other (unrelated) shareholder in LC Corp.wishes to buy James out with one-half the assets of LC corp. consisting of tracrors, tools, and equipments, all written down below current value. James wishes to transfer these assets to Greenscape Inc. What are the tax consequences of the following transaction alternatives and which one, if any, is preferable? A. LC Corp. redeems James's stock with the property and james contributes the assets to the capital of Greenscape Inc. B. James contributes his LC Corp. stock to Grenscape and LC redeems its stock from Greenscape for the assets. Please submit the relevant answer for each situation separately

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