Your long term clients and cousins, Elijah and Zion took a leap of faith after graduating college and started North Corporation. North Corporation is a service based company and has been successful since its inception. There are a total of $700$ shares, of which Elijah and Zion equally own $350$ shares. In the current year, Elijah transferred property worth $$70,000$ to North for an additional $50$ shares.

Does Sec. $351$ apply to property transfers to an existing corporation?

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?