Section 351 Applies to an Exchange If the Contributing Shareholders

question 27

True/False

Section 351 applies to an exchange if the contributing shareholders own more than 50% of a corporation's stock after the transfer.

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Definitions:

Metals

Elements that typically have a shiny surface and can conduct electricity and heat efficiently.

Electromagnet

A type of magnet in which the magnetic field is produced by an electric current, which can be turned on or off.

AC Line

A conductor or conductors that carry alternating current (AC) electricity from the power source to the load.

Demagnetized

The state of a magnetic material where it has lost its magnetization, either partially or completely.