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:

Behavioral Choices

Refers to the decisions and actions taken by an individual, which are influenced by factors like upbringing, environment, and personal beliefs.

Malnutrition

A health condition resulting from inadequate consumption of nutrients, leading to various health issues like stunted growth and weakened immunity.

Undernutrition

A condition resulting from insufficient intake of nutrients, leading to health issues like stunted growth, weakness, and impaired immunity.

Male Climacteric

The period of physical and psychological change relating to the male reproductive system that occurs during late middle age.