Matt and Sheila Form Krupp Corporation

question 15

Multiple Choice

Matt and Sheila form Krupp Corporation. Matt contributes property with an FMV of $55,000 and a basis of $35,000. Sheila contributes property with an FMV of $75,000 and a basis of $40,000. Matt sells his stock to Paul shortly after the exchange. The transaction will

• A)not qualify under Sec. 351.
• B)qualify under Sec. 351 if Matt can show that the sale to Paul was not part of a prearranged plan.
• C)qualify with respect to Sheila under Sec. 351 whether Matt qualifies or not.
• D)qualify under Sec. 351 only if an advance ruling has been obtained.

---

Definitions:

Substance Use Disorders

Conditions characterized by an uncontrollable use of substances despite harmful consequences.

D2 Receptor

A subtype of dopamine receptor crucial for many brain functions, including movement and reward, and implicated in various psychiatric and neurological disorders.

Illegal Drug

Substances whose production, sale, or possession is prohibited by law due to their potential for abuse and harm.

Intramuscular Injection

A method of administering medication deep into the muscles, allowing for fast absorption into the bloodstream.