Ask Question
BusinessBusiness
26 November, 19:11

A taxpayer must receive voting common stock to be eligible for deferral in a Section 351 exchange. True False

+2
Answers (1)
  1. 26 November, 21:28
    0
    True

    Explanation:

    Section 351 (a) establishes that no gain or loss should be recognized when property is transferred to a corporation:

    in exchange of stock in that corporation (might receive common stock or share class stocks) as soon as the exchange is complete, the new stockholder must be in control of the corporation.

    Not all common stocks have the same voting rights, that is why they are divided into share classes which assign separate voting rights or powers. Section 351 does not include preferred stocks.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “A taxpayer must receive voting common stock to be eligible for deferral in a Section 351 exchange. True False ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers
You Might be Interested in
A newspaper story discussing high profits and low unemployment indicates a strong economy -true -false
Answers (1)
A company pays all selling expenses in the month incurred. Budget information includes: Administrative salaries: $50,000; Sales commissions: $20,000; Advertising: $10,000; Depreciation on store equipment: $25,000;
Answers (1)
If total current assets are $140,000 at the end of Year 1, increase by $50,000 by the end of Year 2, and increase by $50,000 in Year 3, the percentage increase over the preceding year is less in Year 3 than in Year 2.
Answers (1)
Given an anticipated inflation premium of 1.45% and a real rate of interest of 4.34%, what is the nominal interest rate? Round your answer to 4 decimal places. Group of answer choices
Answers (1)
The following information pertains to the Packer Corporation. Calculate the cost of goods sold for the period: Beginning Raw Materials $ 30,300 Ending Raw Materials 70,300 Beginning Work in Process Inventory 40,300 Ending Work in Process Inventory
Answers (1)
New Questions in Business
Which of the following would not be considered internal users of accounting data for a company? The controller of a company. Salesmen of the company. Creditors of a company. The president of a company.
Answers (1)
Which best describes the function of the federal reserve system Administration of taxes Control of money supply Oversight of international trade Regulation of commerce
Answers (1)
Fuente, Inc., has identified an investment project with the following cash flows. Year Cash Flow 1 $1,030 2 1,260 3 1,480 4 2,220 a. If the discount rate is 8 percent, what is the future value of these cash flows in Year 4? b.
Answers (1)
Suppose that borrowing is restricted so that the zero-beta version of the CAPM holds. The expected return on the market portfolio is 17%, and on the zero-beta portfolio it is 8%. What is the expected return on a portfolio with a beta of 0.
Answers (1)
You've written a check to Goodwill Supply, and the check has been lost. What should you do? A. Stop payment on the first check; then write a second one. B. Send a counter check to Goodwill. C. Write another check immediately. D.
Answers (1)
Home » Business » A taxpayer must receive voting common stock to be eligible for deferral in a Section 351 exchange. True False
Sign Up Forgot Password?