John and Mary each exchange property worth $50,000 for 100 shares of New Corporation stock. Peter exchanges

Question:

John and Mary each exchange property worth $50,000 for 100 shares of New stock. Peter exchanges services for 98 shares of New stock and $1,000 in cash for two shares of New stock. Are the Sec. 351 requirements met? Explain why or why not. What advice would you give the shareholders?
Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...