The Control Requirement Under § 351 Requires That the Person

question 50

True/False

The control requirement under § 351 requires that the person or persons transferring property to the corporation immediately after the transfer own stock possessing at least 80% of the total combined voting power of all classes of stock entitled to vote and at least 80% of the total number of shares of all other classes of stock of the corporation.

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Definitions:

Residual Value

The estimated value that an asset will realize upon its sale at the end of its useful life, important in calculating depreciation.

Sales Tax

A sales tax is a government-imposed levy on the sale of goods and services, which is usually a percentage of the retail price.

Freight Charges

Costs associated with the transportation of goods from one location to another, typically paid by the shipper or receiver.

Straight-Line Method

A method of calculating depreciation of an asset by evenly spreading its cost over its expected useful life.