Which of the following statements best describes the concept of control as it applies to a section 351 transaction?
A)Control is defined as the ownership of 80 percent or more of a corporation's voting stock.
B)Control is defined as the ownership of 80 percent or more of the fair market value of a corporation's stock.
C)Control is defined as the ownership of 80 percent or more of a corporation's voting stock and 80 percent or more of the fair market value of a corporation's stock.
D)Control is defined as the ownership of 80 percent or more of a corporation's voting stock and 80 percent or more of the total number of shares of each class of nonvoting stock.

Question

Quizplus · Accepted Answer

The Answer of Which of the following statements best describes the concept of control as it applies to a section 351 transaction?
A)Control is defined as the ownership of 80 percent or more of a corporation's voting stock.
B)Control is defined as the ownership of 80 percent or more of the fair market value of a corporation's stock.
C)Control is defined as the ownership of 80 percent or more of a corporation's voting stock and 80 percent or more of the fair market value of a corporation's stock.
D)Control is defined as the ownership of 80 percent or more of a corporation's voting stock and 80 percent or more of the total number of shares of each class of nonvoting stock.

Which of the Following Statements Best Describes the Concept of Control