Which of the Following Is Not a Required Characteristic of a Qualifying

question 24

Multiple Choice

Which of the following is not a required characteristic of a qualifying Section 351 transaction?

• A)If more than 20 percent of the stock is transferred for services, property must also be transferred by the service provider.
• B)Gain may be recognized if the transferor receives something other than stock.
• C)The transferors must control the corporation after the transfer.
• D)Control requires shareholders owning only 80 percent of the voting stock if nonvoting stock is outstanding.

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Definitions:

Hereditary Factors

Genetic characteristics and traits that are passed from parents to offspring, influencing various aspects of biological and psychological development.

Personality Traits

Enduring characteristics that describe an individual's behavior across different situations and time.

Multivariate Approach

An analytical strategy that involves the simultaneous observation and analysis of more than one outcome variable.

Bivariate Approach

An analytical method that involves the examination of two variables simultaneously to determine the empirical relationship between them.