Which of the Following Requirements Do Not Have to Be

question 94

Multiple Choice

Which of the following requirements do not have to be met in a section 351 transaction?

• A)Each transferor of property must receive stock equal to at least 80 percent of the fair market value of the property transferred.
• B)In the aggregate, the transferors of property to the corporation must collectively control the corporation immediately after the transfers.
• C)Only property transferred to a corporation is eligible for deferral.
• D)All transfers of property to a corporation must be made simultaneously to qualify for deferral.

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Definitions:

Suing Shareholder

A stockholder who initiates a legal action against a corporation, often for actions that are believed to harm the company or its shareholders.

Reasonable Attorney's Fees

The amount of legal fees deemed fair for the work performed, often recoverable from the opposing party in litigation under certain conditions.

Strike Suit

A lawsuit with weak merits, often filed by a shareholder against a corporation's executives, hoping for a settlement.

Out-Of-Court Settlements

A resolution reached between disputing parties without the need for a court trial.