Your long term clients and married couple, David and Diana started D&D Corporation. D&D Corporation is...

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Your long term clients and married couple, David and Diana started D&D Corporation. D&D Corporation is a service based company and has been successful since its inception! There are a total of 1,000 shares, of which David and Diana equally own 500 shares. In the current year, David transferred property worth $80,000 to D&D for an additional 50 shares. 1. Does Sec. 351 apply to property transfers to an existing corporation? 2. Does Sec. 351 apply to the scenario above? Explain why or why not. 3. If not, what can be done to qualify the transaction for Sec. 351 treatment? Your long term clients and married couple, David and Diana started D&D Corporation. D&D Corporation is a service based company and has been successful since its inception! There are a total of 1,000 shares, of which David and Diana equally own 500 shares. In the current year, David transferred property worth $80,000 to D&D for an additional 50 shares. 1. Does Sec. 351 apply to property transfers to an existing corporation? 2. Does Sec. 351 apply to the scenario above? Explain why or why not. 3. If not, what can be done to qualify the transaction for Sec. 351 treatment?