Which of the Following Statements About §351 Transactions Is False

question 23

Multiple Choice

Which of the following statements about §351 transactions is false?

• A)A transferor of property must receive stock equal to at least 80 percent of the fair value of the property transferred.
• B)In the aggregate, the transferors of property to the corporation must collectively own 80 percent of the voting stock of the corporation immediately after the transfers.
• C)Only property transferred to a corporation is eligible for deferral.
• D)All transfers of property to a corporation must be made simultaneously to qualify for deferral.

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Definitions:

Asset

A resource with economic value that an individual, corporation, or country owns or controls with the expectation that it will provide future benefit.

Rational Investor

An individual who makes investment decisions based on logical analysis, aiming to maximize returns while minimizing risks.

Interest Rate

The fraction of a loan that is charged to the borrower in the form of interest, typically described as an annual percentage of the loan's remaining principle.

Asset

An item of value owned by a person or corporation, expected to provide future benefits or returns.