Matt and Sheila Form Krupp Corporation

question 15

Multiple Choice

Matt and Sheila form Krupp Corporation. Matt contributes property with an FMV of $55,000 and a basis of $35,000. Sheila contributes property with an FMV of $75,000 and a basis of $40,000. Matt sells his stock to Paul shortly after the exchange. The transaction will

• A)not qualify under Sec. 351.
• B)qualify under Sec. 351 if Matt can show that the sale to Paul was not part of a prearranged plan.
• C)qualify with respect to Sheila under Sec. 351 whether Matt qualifies or not.
• D)qualify under Sec. 351 only if an advance ruling has been obtained.

---

Definitions:

C. Wright Mills

An American sociologist known for his work on the structure of power in American society and for coining the term "sociological imagination."

Sociologists

Scholars who study society and social behavior by examining the groups, cultures, organizations, social institutions, and processes that develop when people interact and work together.

Society

Represents a group of individuals involved in persistent social interaction, or a large social group sharing the same geographical or social territory, typically subject to the same political authority and dominant cultural expectations.

Sociology

The examination of societal behavior, relationships within society, the ways people interact, and the cultural aspects that pervade daily existence.