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Stu Walker Has Owned All 200 Shares of Lance Corporation's

question 96

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Stu Walker has owned all 200 shares of Lance Corporation's stock for the past six years. This year, Megan Jones contributes property with a $100,000 basis and a $160,000 FMV for 160 newly issued Lance shares. At the same time, Stu contributes $30,000 in cash for 30 newly issued Lance shares. What tax issues should Megan and Stu consider with respect to the stock acquisitions?


Definitions:

Electromyogram

An electromyogram (EMG) is a diagnostic test that measures the electrical activity generated by muscles in order to assess their health and function.

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One of the four chambers of the heart, receiving oxygen-rich blood from the lungs and pumping it into the left ventricle.

Right Atrium

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