2-35 Incorporating a Sole Proprietorship.

C:2-35 Incorporating a Sole Proprietorship. Tom incorporates his sole proprietorship as TotalCorporation and transfers its assets to Total in exchange for all 100 shares of Total stockand four $10,000 interest-bearing notes. The stock has a $125,000 FMV. The notesmature consecutively on the first four anniversaries of the incorporation date. The assetstransferred are as follows:Assets