ABC Company is owned 80/20 by Adam and Betty. Charles contributes land with a basis of $10,000 and a FMV of $50,000 to ABC Company. in exchange for 10% of the ABC Company stock. In the same transfer, Adam contributes $100 to the corporation in exchange for a few additional shares. Prior to the transfer, Adam’s interest in ABC Company was worth $360,000.

What is Adam's Charles and ABC Company tax consequence for this scenario?

Answer rating: 100% (QA)

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