Which of the following statements about §351 transactions is false?
A)A transferor of property must receive stock equal to at least 80 percent of the fair value of the property transferred.
B)In the aggregate, the transferors of property to the corporation must collectively own 80 percent of the voting stock of 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.

Question

Quizplus · Accepted Answer

A transferor does not need to receive stock equal to at least 80 percent of the fair value of the property transferred; rather, the transferors must collectively own at least 80 percent of the voting stock and 80 percent of each class of non-voting stock immediately after the exchange.

Which of the Following Statements About §351 Transactions Is False