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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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The unequal treatment of job applicants or workers based on race, gender, age, or other irrelevant characteristics which affects their opportunities and wages.

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An increase in the rate of pay for workers, which can occur due to economic growth, inflation, or increased demand for labor.

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