Maria Has Been Operating a Business as a Sole Proprietorship

question 8

Essay

Maria has been operating a business as a sole proprietorship for several years. She needs additional capital and wants to incorporate her business. The assets of her business (building, land, inventory, and so on)have a $400,000 adjusted basis and a $1.5 million FMV. Maria is willing to exchange the assets for 1,500 shares of Metro Corporation stock, each having a $1,000 FMV. Bill and John are each willing to invest $500,000 in Maria's business and will each receive 500 shares of stock. Why is Sec. 351 important to Maria? Does it matter to Bill and John?

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Definitions:

Poor Women

Females living under the poverty line, facing unique challenges including limited access to healthcare, education, and employment opportunities.

Second Shift

The phenomenon where individuals, especially women, work a paid job and then return home to perform unpaid labor, such as housework and childcare.

Arlie Hochschild

A prominent sociologist known for her work on emotional labor, gender roles, and family dynamics.

U.S. Census Bureau

An essential body within the U.S. Federal Statistical System, tasked with the creation of statistics concerning the American public and the economy.