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17 June, 15:27

Jones incorporated a sole proprietorship by exchanging all the proprietorship's assets for the stock of nu co., a new corporation. to qualify for tax-free incorporation, jones must be in control of nu immediately after the exchange. what percentage of nu's stock must jones own to qualify as "control" for this purpose?

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  1. 17 June, 18:42
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    Jones must own to qualify as "control" for this purpose at least 50% of the outstanding stock of NU Co. The standard states that a business is considered to have control by owning at least 50% of the outstanding stock of another business provided that the other 50% is not wholly owned by a single person.
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