Abrams Company is a sole proprietorship. The book value of its identifiable net assets is $400,000, and

Question:

Abrams Company is a sole proprietorship. The book value of its identifiable net assets is $400,000, and the fair value of the same net assets is $600,000. It is agreed that the business is worth $850,000. What advantage might there be for the seller if the company is exchanged for the of another as opposed to receiving cash? Consider both the immediate and future impact.
Common Stock
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