Question: Assume U.S 2018 tax rules apply. You have a client and they formed a corporation with 5 of their friends. All of the people were

Assume U.S 2018 tax rules apply.

You have a client and they formed a corporation with 5 of their friends. All of the people were required to put in $50,000 or assets valued at the same into the company, but only 1 was going to work full time for the company. What is the tax effect to the contributors and what rate would they be taxed at for this transaction?

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