Question
Jon and Mary each exchange property worth $50,000 for 100 shares of New corporation stock. Peter exchanges services for 98 shares of new stock and
Jon and Mary each exchange property worth $50,000 for 100 shares of New corporation stock. Peter exchanges services for 98 shares of new stock and $1,000 in money for two shares of new stock. Are the Sec. 351 requirements met? Explain why or why not. What advice would you give the shareholders?
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Intermediate Accounting principles and analysis
Authors: Terry d. Warfield, jerry j. weygandt, Donald e. kieso
2nd Edition
471737933, 978-0471737933
