C owns all of the stock of Z corporation, which is worth $1 million. Z wants to acquire land
worth $75,000 from D. C porposes to transfer $1.00 of cash to Z at the same time D transfers the
land to Z. Each C and D will receive stock.
a This is good Seciton 351 transaction. D will not recognize loss and Z Corporation will take a
higher carry-over basis from D.
b Tis is not a good Section 351 transactions since C is transferring de minimus amount of
property per regularion 1.351 (a)(1)(ii).
c Neither of the above
Which one is the correct answer
Solution
c. neither of the above..
4.16.24 21st Century Movements for Black Lives.pptx
C owns all of the stock of Z corporation, which is worth $1 million..pdf
1. C owns all of the stock of Z corporation, which is worth $1 million. Z wants to acquire land
worth $75,000 from D. C porposes to transfer $1.00 of cash to Z at the same time D transfers the
land to Z. Each C and D will receive stock.
a This is good Seciton 351 transaction. D will not recognize loss and Z Corporation will take a
higher carry-over basis from D.
b Tis is not a good Section 351 transactions since C is transferring de minimus amount of
property per regularion 1.351 (a)(1)(ii).
c Neither of the above
Which one is the correct answer
Solution
c. neither of the above.
