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Frans and Arie Own 75 Shares and 25 Shares of Vogel

Question 82

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Frans and Arie own 75 shares and 25 shares of Vogel Corporation stock, respectively. There are no other owners. Frans transfers property with a $30,000 adjusted basis and a $50,000 FMV to Vogel Corporation in exchange for an additional 25 shares of Vogel stock. Does this property-for-stock exchange qualify for Sec. 351 treatment?

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Yes. Since Frans owned 80% (10...

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