Oliver and Tomoko incorporate Owl Two, Inc. ("Owl"). Oliver contributes a truck (FMV-$11,000, Basis - $15,000, and subject to an outstanding loan of $8,000 which Owl will assume) in exchange for 3,000 shares of Owl common stock. Tomoko transfers $7,000 cash in exchange for 7,000 shares of Owl common stock. Does the transaction qualify for nonrecognition under section 351? Explain your answer. 

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In this scenario Oliver and Tomoko are incorporating Owl Two Inc Owl and each contributing assets in ... View the full answer