Which of the following statements best describes the concept of control as it applies to a §351 transaction?

Which of the following statements best describes the concept of control as it applies to a §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.


Answer: D


Learn More :