Under Code § 355, Nonrecognition of Gain or Loss Is

Under Code § 355, nonrecognition of gain or loss is granted only to distributions of stock or securities of a "controlled" corporation.Control is present where

A) The distributing parent corporation owns at least 80 percent of the voting power of all classes of the subsidiary's stock entitled to vote, and at least 50 percent of the total number of shares of all other classes of stock.
B) The distributing parent corporation owns at least 51 percent of the voting power of all classes of the subsidiary's stock entitled to vote, and at least 51 percent of the total number of shares of all other classes of stock.
C) The distributing parent corporation owns at least 80 percent of the voting power of all classes of the subsidiary's stock entitled to vote, and at least 80 percent of the total number of shares of all other classes of stock.
D) None of the above is true.