(Answered) Question on july 1 alan roes sole proprietor of keep nail

Accounting

Question: On July 1, Alan Roes, sole proprietor of Keep Nail, transferred all of Keep's assets to Merit, Inc., a new corporation, in exchange for some of Merit's stock. Al Clyde, who is not related to Rees, also bought some of Merit's stock on July 1. Merit's outstanding capital stock consisted of 1,000 shares of common stock with a per value of $100 per share. For the transfer of Keep nail's assets to be tax - free, what is the minimum number of shares of Merit's stock that must be owned by Rees and Clyde immediately after the exchange?

500

501

800

801

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