Identify Which of the Following Statements Is True

question 68

Multiple Choice

Identify which of the following statements is true.

• A)The control requirement for Sec. 355 differs from the control requirement under Sec. 351.
• B)Aspect Corporation transfers assets to newly created Expert Corporation in exchange for all of Expert's stock. Shortly after the transfer, Aspect exchanges one-half of the Expert stock that it receives for land. The individuals transferring the land have never been Aspect shareholders. This transaction qualifies as a divisive Type D reorganization and is tax-free to all parties.
• C)Common stock can be exchanged for preferred stock in the same corporation as a Type E reorganization.
• D)All of the above are false.

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Definitions:

Workplace Harassment

Unwelcome conduct in a professional environment that can lead to a hostile work atmosphere or affect an employee's job performance.

Outside the Scope

Referring to matters that fall beyond the range of authority, interest, or area of consideration designated for a particular discussion, activity, or project.

Vicariously Liable

Vicariously liable means being held legally responsible for the actions of another person, such as an employer being liable for acts of their employees.

Inherently Dangerous

Activities or objects that carry a risk of harm or damage as a natural part of their existence or function.