In Which of the Following Independent Situations Is the Sec

question 9

Essay

In which of the following independent situations is the Sec. 351 control requirement met?
a)Jane transfers property to Jet Corporation for 75% of Jet Corporation's stock, and Susan provides services to Jet Corporation for the remaining 25% of Jet Corporation stock.
b)Paul transfers property to Pride Corporation for 60% of Pride's stock, and Bob transfers property worth $15,000 and performs services worth $25,000 for the remaining 40% of Pride's stock.
c)Herb and his wife Carolyn each have owned 50% of the 100 outstanding shares of Wykert Corporation stock since it was formed three years ago. In the current year, their daughter, Cindy, transfers property to Wykert Corporation for 50 newly issued shares of Wykert stock.
d)John and Pam develop a plan to form PJ Corporation on May 2 of this year. John transfers property worth $50,000 for 50 shares of PJ Corporation stock. As part of the single plan to incorporate, Pam transfers $50,000 cash for 50 shares of PJ Corporation stock on July 1.
e)Assume the same facts as in Part (d), except that John has a prearranged plan to sell 30 of his shares to Steven on September 1.

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Definitions:

Kamehameha III

The third king of the Kingdom of Hawaii, who reigned from 1825 to 1854 and played a vital role in maintaining Hawaiian independence and enacting legal reforms.

Feathers

Flexible, lightweight structures forming the plumage of birds, often used symbolically or decoratively by humans.

Rarotonga Staff God

A traditional Polynesian religious artifact from Rarotonga, characterized by its wooden shaft and distinctive representation of deity figures, used in ceremonies and worship.

Projecting Figures

Statues or sculpted figures extended out from a surface or background, often used in architectural or artistic contexts.