Which of the following classes of stock is not allowed to be used in a section 351 transaction?
A)Voting common stock.
B)Voting preferred stock.
C)Nonvoting preferred stock.
D)All of these classes of stock can be used in a section 351 transaction.

Question

Quizplus · Accepted Answer

All of these classes of stock can be used in a section 351 transaction. Section 351 allows for the transfer of property to a corporation by one or more persons in exchange for stock in that corporation, without recognizing a gain or loss, and it does not exclude any specific type of stock (voting common, voting preferred, or nonvoting preferred) from being used in such transactions.

Which of the Following Classes of Stock Is Not Allowed