a.) What if one of the control group transferors makes a voluntary transfer, that is, a gift to his child, of the stock shortly after the initial transaction? (There are no related party issues). Is control measured after the initial transaction or after the gift?

b.) What if the shareholder directs the corporation to issue the stock directly to the daughter. How is control measured?

Answer rating: 100% (QA)

Gift is generally regarded as a transfer of ownership of a property where the sender willingly brings into effect such transfer without any compensation or consideration in monetary value It may be in ... View the full answer