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Suppose Elijah and Zion each own 100 shares of North Corporation stock. Zion transfers property worth $50,000 to North for an additional 25 shares. Does

Suppose Elijah and Zion each own 100 shares of North Corporation stock. Zion transfers property worth $50,000 to North for an additional 25 shares.

  1. Does Sec. 351 apply to the scenario above? Explain why or why not.If not, what can be done to qualify the transaction for Sec. 351 treatment?

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