Chip has an accrual$-$method, calendar$-$year sole proprietorship. On January $1,2019,$ he creates accrual$-$method, calendar$-$year corporation and transfers to corporation, in exchange for all of corporation$$s stock $(1$ class$),$ a single asset as follows:

Asset $($depreciable personality$)$:

Original Cost $$100,000$

Adjusted Basis $$30,000$

Value $$250,000$

Holding period $=7$ years

Vic joined Chip in January $1,2019,$ capitalization of corporation, with Vic contributing $$200,000.$ Chip got half of the stock, and $$50,000$; Vic got the other half of the stock.

What is the value of a corporation immediately after the section $351$ event $($you need this to determine the value of the stock received by the shareholders in the section $351$ event$)?$

Determine the tax consequence to

Vic

Chip

Corporation