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short answer We have suggested that when a taxpayer transfers assets from a sole proprietorship to a corporation, the taxpayer would prefer to maximize the

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We have suggested that when a taxpayer transfers assets from a sole proprietorship to a corporation, the taxpayer would prefer to maximize the amount of debt received as consideration for the assets and minimize the amount of stock received for the assets. Why does the taxpayer prefer to receive debt rather than stock? Be concise and complete.

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