Which of the following class 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

Section 351 is flexible with respect to the stock issued by the transferee corporation, although the voting power test must be met by the transferor shareholders in the aggregate.

Which of the Following Class of Stock Is Not Allowed