VJ Corporation Is to Be Owned Equally by Vic and Joe

question 75

Essay

VJ Corporation is to be owned equally by Vic and Joe. The corporation will be formed by exchanging the assets and liabilities of the V & J Manufacturing Partnership for all the corporation's stock on September 1 of the current year. Both shareholders use the calendar year as their tax year and desire to make an S election. What tax issues should Vic and Joe consider with respect to the incorporation?

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Definitions:

Vowel and Consonant Sounds

Fundamental speech sounds, with vowels being produced without any significant constriction of airflow and consonants involving some degree of airflow obstruction.

Months

Units of time in calendars that approximately correspond to the period of the lunar cycle.

Resilience

The ability of an individual to recover quickly from difficulties; toughness.

Adversity

Difficulties or misfortune that one may face in life.