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Sam and Julie formed X corporation 10 years ago. Sam owns 50% of the stock and Julie owns 50%. On January 1, 2019, Earl contributes

Sam and Julie formed X corporation 10 years ago. Sam owns 50% of the stock and Julie owns 50%. On January 1, 2019, Earl contributes appreciated property to the corporation in exchange for a 10% interest, and Sam's and Julie's stock ownership percentages are each decreased by 5%. 



What result to Sam, Julie, and Earl?

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