We have the following facts: The three below meet on January 2, 2021 and decide the following will happen as one transaction (even though not all on the same day) Emily exchanges land for 100 shares of ABC Inc on January 7, 2021. She has a basis of $10,000 and FMV of $100,000 David transfers cash for 10 shares on January 13, 2021. His basis and FMV are both $10,000 On February 10, 2021, Ethan agrees to exchange services during the next year for 100 shares of stock. They all agree that the services will be worth $100,000 QUESTION: Does this qualify as a $351 transaction? O a. No, Ethan's services taint the whole thing O b. Yes at Emily but no to David (he was after Emily and so no control) and no to Ethan for services O c. Yes, the three met at one time and all agreed to create the entity. So part of a prearranged plan O d. Yes as to Emily as she had control immediately after her transaction e. Yes as to Emily and David as they transferred property

We have the following facts: The three below meet on January 2, 2021 and decide the following will happen as one transaction (even though not all on the same day) Emily exchanges land for 100 shares of ABC Inc on January 7, 2021. She has a basis of $10,000 and FMV of $100,000 David transfers cash for 10 shares on January 13, 2021. His basis and FMV are both $10,000 On February 10, 2021, Ethan agrees to exchange services during the next year for 100 shares of stock. They all agree that the services will be worth $100,000 QUESTION: Does this qualify as a $351 transaction? O a. No, Ethan's services taint the whole thing O b. Yes at Emily but no to David (he was after Emily and so no control) and no to Ethan for services O c. Yes, the three met at one time and all agreed to create the entity. So part of a prearranged plan O d. Yes as to Emily as she had control immediately after her transaction e. Yes as to Emily and David as they transferred property

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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