Jack exchanges property worth $100,000 ($30,000 basis) for 70% of the stock. Janet owned 100% of...

  

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Jack exchanges property worth $100,000 ($30,000 basis) for 70% of the stock. Janet owned 100% of the company before the company transferred 70% to Jack for his property. Immediately after the transfer, Jack and Janet own 100% of the company. Janet to participate in the transaction put an additional $1,000 into the company to keep her 30%. This is a 351 since they have more than 80 percent control and both participated. Select one: O True False Which of the following best describes the facts as related below: Father redeems all of his shares leaving his children as shareholders. He agrees not to have anything to do with the business for ten years. O a. §302(b)(1) b. §302(b)(4) Oc. All of the answers (except none of them) are right d. None of these answers are right e. §302(b)(2) f. §303 g. §302(b)(3) Jack exchanges property worth $100,000 ($30,000 basis) for 70% of the stock. Janet owned 100% of the company before the company transferred 70% to Jack for his property. Immediately after the transfer, Jack and Janet own 100% of the company. Janet to participate in the transaction put an additional $1,000 into the company to keep her 30%. This is a 351 since they have more than 80 percent control and both participated. Select one: O True False Which of the following best describes the facts as related below: Father redeems all of his shares leaving his children as shareholders. He agrees not to have anything to do with the business for ten years. O a. §302(b)(1) b. §302(b)(4) Oc. All of the answers (except none of them) are right d. None of these answers are right e. §302(b)(2) f. §303 g. §302(b)(3)

Answer rating: 100% (QA)

This is a Case of property transfered before transfering the company here in the case J... View the full answer