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, LeviLevi, and RickRick form Stand UpStand Up Corporation and transfer the following items to Stand UpStand Up: a. Is the exchange nontaxable under Sec.
, LeviLevi, and RickRick form Stand UpStand Up Corporation and transfer the following items to Stand UpStand Up:
a. Is the exchange nontaxable under Sec. 351? Explain the tax consequences of the exchange to JoeJoe, LeviLevi, RickRick, and Stand UpStand Up.
b. How would your answer to Part a change if LeviLevi instead had received 220220 shares of common stock and 220220 shares of preferred stock?
c. How would your answer to Part a change if RickRick instead had contributed $ 950$950 cash as well as services worth $ 7 comma 000$7,000?
Item Transferred Transferor's Basis Shares Received Transferor Joe Levi Rick FMV by Transferor $ 20,000 1,100 common 27,000 275 preferred 7,950 330 common Item Patent Cash Services $27,000 The common stock has voting rights. The preferred stock does notStep by Step Solution
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