Which of the Statements Is Inaccurate Regarding Requirements for Nonrecognition

question 58

Multiple Choice

Which of the statements is inaccurate regarding requirements for nonrecognition of gain or loss upon the transfer of assets to a corporation in exchange for stock?

• A)Depreciation recapture applies to a transfer which falls under Sec.351.
• B)Property must be transferred to the corporation solely in exchange for stock of the corporation.
• C)The transferor-shareholders must be in control (80%)of the corporation immediately after the exchange.
• D)If property or money is received by the transferor,gain (but not loss)is recognized to the extent of the lesser of the boot received or the realized gain.

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Definitions:

Good-News Message

A communication technique used in business writing or email to convey positive or favorable information to the recipient.

Subtle Sales Messages

Indirect or not immediately apparent marketing messages aimed at persuading consumers.

Direct Sales Messages

Communications focused on promoting and selling a product or service directly to the consumer.

Persuasive Arguments

Statements designed to convince or influence others to accept a particular point of view.