Identify Which of the Following Statements Is True

question 68

Multiple Choice

Identify which of the following statements is true.

• A)To qualify for Sec. 351 treatment, control is defined as more than 50% ownership of the voting stock, and more than 50% of all other classes of stock.
• B)If a shareholder receives stock with an FMV greater than the FMV of the property exchanged in a Sec. 351 transaction, the excess FMV may be considered a gift from one shareholder to another shareholder.
• C)Only transfers to newly created corporations qualify for Sec. 351 treatment.
• D)All of the above are false.

---

Definitions:

Binet-Simon Scale

An early tool devised for measuring intelligence, created by Alfred Binet and Théodore Simon.

Mental Test

An examination that measures a person's cognitive abilities and mental, emotional, or psychological states.

Psychological Laboratories

Facilities equipped for experimental research and study of psychological phenomena, often found within universities or research institutions.

Stanford Achievement Test

A standardized test that measures academic knowledge and skills in young students, covering a variety of subjects.