Ermaine owns all 200 shares of peach corporation stock, Ask an Expert

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ermaine owns all 200 shares of Peach Corporation stock valued at $50,000. Kenya, a new shareholder, receives 200 newly issued shares from Peach Corporation in exchange for inventory with an adjusted basis of $40,000 and an FMV of $50,000. Which of the following statements is correct?

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Accounting Basics, Accounting

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