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Phil and Nick Form Philnick Corporation

question 75

Essay

Phil and Nick form Philnick Corporation. Phil exchanges cash and other property for 900 shares (90% of the outstanding shares)of Philnick stock. Nick performs accounting services in exchange for 100 shares of Philnick stock worth $10,000. What are the tax consequences from forming the Philnick Corporation to Phil and Nick?


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A selectable setting that determines the current state or progress of a task, application, or process.

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A graphical symbol, often used to indicate prohibition or that something is not allowed.

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The unending advancement of events and existence throughout past, present, and future seen as a collective entity.

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