What is the value of the shares of the corporation

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Reference no: EM133345013

Question: Individual F owns equipment that originally cost $50,000 and has an undepreciated capital cost of $35,000. F sells the equipment to a corporation for its market value of $45,000. To avoid any tax on the transfer, a section 85 election is filed by F and the corporation and F receives the maximum amount of debt. What is the value of the shares of the corporation that F should receive?

Reference no: EM133345013

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