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Simon and a few friends formed a new corportion. Simon transferred services worth $ 5 , 0 0 0 and cash of $ 5 0

Simon and a few friends formed a new corportion. Simon transferred services worth $5,000 and cash of $50,000 in exchange for 20% of the stock. As long as the corporate formation is treated as tax-free under IRC 351, Simon will not have to recognize any income as a result of the formation
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