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 the choices of classes of stock can be used in a section 351 transaction.

Question

Quizplus · Accepted Answer

In a section 351 transaction, all classes of stock, including voting common stock, voting preferred stock, and nonvoting preferred stock, can be used as long as the transferors have control immediately after the exchange.

Which of the Following Class of Stock Is Not Allowed