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Business, 15.07.2020 20:01 jtbrown0093
George transfers cash of $150,000 to Finch Corporation, a newly formed corporation, for 100% of the stock in Finch worth $80,000 and debt in the amount of $70,000, payable in equal annual installments of $7,000 plus interest at the rate of 9% per annum. In the first year of operation, Finch has net taxable income of $40,000. If Finch pays George interest of $6,300 and $7,000 principal payment on the note:
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George transfers cash of $150,000 to Finch Corporation, a newly formed corporation, for 100% of the...
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