James Russle Is A 50 Shareholder In A Lanscaping Corparation Lc Corp He Has Just

James Russle is a 50% shareholder in a lanscaping corparation, LC Corp. He has just incorporated his own wholly- owned lanscaping business, Greenscape Inc. The other unrelated shareholder in LC Corp . wants to buy James out with one half the of LC Corp. consisting of tractors, tools, and equipment, all written down below current value. James wishes to transfer these assets to Greenscape Inc. What are the tax consequences if LC Corp redeems Jame’s Stock with the property and james contributes the assets to the capital of Greenscape Inc?

 

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