Question: A contributes appreciated property worth $80, with an adjusted basis of $60, to newly formed X corporation and in exchange for all of the 80
A contributes appreciated property worth $80, with an adjusted basis of $60, to newly formed X corporation and in exchange for all of the 80 outstanding shares of X, worth $80. Immediately thereafter, A gives 20 shares to B, As employee, in payment of accrued wages. Does 351(a) apply to As exchange of property for stock? How much gross income must A and B each recognize, if any, on these transactions
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