What advantage might there be for the seller


Problem

AbramsCompanyisasoleproprietorship.Thebookvalueofitsidentifiablenetassets is $400,000, and the fair value of the same net assets is $600,000. It is agreed that the business is worth $850,000. What advantage might there be for the seller if the company is exchanged for the common stock of another corporation as opposed to receiving cash? Consider both the immediate and future impact.

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Financial Accounting: What advantage might there be for the seller
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