Identify Which of the Following Statements Is True

question 68

Multiple Choice

Identify which of the following statements is true.

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

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Definitions:

Equal Protection

A constitutional principle in the U.S. that requires states to treat all citizens equally under the law, prohibiting discrimination on arbitrary grounds.

Fifth Amendment

An amendment to the US Constitution that provides several rights relevant to both criminal and civil legal proceedings, including protections against self-incrimination and double jeopardy.

Due Process Clause

A constitutional guarantee found in the Fifth and Fourteenth Amendments of the U.S. Constitution, assuring all citizens fair treatment through the judicial system.

First Amendment

The amendment to the United States Constitution prohibiting the government from making laws that infringe on the freedom of speech, religion, press, assembly, and petition.