Question
Joe and Fred make transfers to form JF corporation. Joe transfers property with a fmv of $100,000 and a basis of $60,000 to JF for
Joe and Fred make transfers to form JF corporation. Joe transfers property with a fmv of $100,000 and a basis of $60,000 to JF for 100 shares of stock. Fred contributes services to JF for 30 shares of stock. How much property will Fred need to contribute to make this transaction qualify for 351.
a) At least $70,000
b) At least $30,000
c) At least $10,000
d) At least $6,000
e) At least $3,000
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Managerial Accounting
Authors: Ray Garrison, Eric Noreen and Peter Brewer
14th edition
978-007811100, 78111005, 978-0078111006
