Question: Jack transfers equipment FMV $ 2 5 , 0 0 0 with a tax basis of $ 1 0 , 0 0 0 into X

Jack transfers equipment FMV $25,000 with a tax basis of $10,000 into X corporation in exchange for 75 shares of X corporation stock. Jill transfers land held for investment with a FMV of $75,000 and a tax basis of $25,000 in exchange for 25 shares of X corporation stock. X corporation has 100 shares outstanding. This transaction fails to satisfy section 351.
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