LO.7 Sarah incorporates her small business but does not transfer the machinery and equipment the business uses

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LO.7 Sarah incorporates her small business but does not transfer the machinery and equipment the business uses to the corporation. Subsequently, the machinery and equipment are leased to the corporation for an annual rent. What tax reasons might Sarah have for not transferring the machinery and equipment to the corporation when the business was incorporated?

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Allan Kasyuma

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