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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?
Computed Tomography
A diagnostic imaging procedure that uses a combination of X-rays and computer technology to produce detailed cross-sectional images of the body's internal structures.
Electroencephalography
A non-invasive test that involves the use of sensors placed on the scalp to measure the electrical activity of the brain.
Diagnostic Procedure
A method or technique used to identify a disease or condition from its signs and symptoms.
Narcolepsy
A sleep disorder marked by uncontrollable episodes of falling asleep during the daytime.
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