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Frank and Sam (father and son) organize a corporation with 100 shares of common stock to which Frank transfers property worth $80,000 in exchange for

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Frank and Sam (father and son) organize a corporation with 100 shares of common stock to which Frank transfers property worth $80,000 in exchange for 70 shares of stock, and Sam transfers property worth $20,000 in exchange for 30 shares of stock. Does Code Sec. 351 apply to the transfers of Frank and Sam? Yes

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