Identify Which of the Following Statements Is True

question 52

Multiple Choice

Identify which of the following statements is true.

• A) Only transfers to newly created corporations qualify for Sec. 351 treatment.
• 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) 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.
• D) All of the above are false.

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Definitions:

Sociobiologists

Scientists who study the biological basis of social behavior across species, emphasizing the role of genetic and evolutionary factors.

Evolutionary Psychologists

Scientists who study psychological traits as evolved adaptations, focusing on the ancestral environment's impact on human behavior.

Genes

The basic physical and functional units of heredity, made up of DNA, that carry the instructions for the development, functioning, growth, and reproduction of all known organisms.

Associate Status

A rank or position that signifies a partial or junior level of membership in an organization or profession.