Identify Which of the Following Statements Is True

question 103

Multiple Choice

Identify which of the following statements is true.

• A)A transferor's gain or loss that goes unrecognized when Sec. 351 applies is permanently exempt from taxation.
• B)If a taxpayer transfers property and services as part of a transaction meeting the Sec. 351 requirements, all of the stock received is counted in determining whether the property transferors have acquired control.
• C)If a taxpayer transfers property and services as part of a transaction meeting the Sec. 351 requirements, the nonrecognition of gain or loss will apply to the services.
• D)All of the above are false.

---

Definitions:

Electrical Impulses

Rapid, transient waves of electrical charge that travel across the nervous system or other tissues, enabling communication, movement, or other physiological functions.

Instrument

A tool or device designed for a specific purpose, especially one used for precision work or scientific measurements.

Lungs

Organs in the chest that are essential for breathing, exchanging oxygen and carbon dioxide between the blood and the air.

Pen-like Instrument

A tool designed to resemble a pen, often used for writing, marking, or specialized purposes like medical examinations.