Explain the tax impact of ben decisions

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Reference no: EM132475671

Point 1: Don and joy invited Ben to join them in forming Aero, a plane-chartering company, as a corporation. At the time, Ben did not want to join and declined their invitation. More than a year later, Ben changed his mind and transferred appreciated property to Aero in exchange for 45% of Aero stock.

Question 1: Is Ben required to recognize his realized gain on the transaction?

Question 2: Explain the tax impact of Ben's decisions?

Reference no: EM132475671

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