Section $351$ applies to whether a transferor has a continuing relationship with the property transferred to a corporation sufficient to justify non$-$recognition treatment or whether the transferor has severed the relationship with the transferred property, justifying recognition. Since Section $351$ is not elective, it only applies when the taxpayer$-$transferor does the following:

Question $2$Answer

a$.$

controls the corporation immediately after the exchange

b$.$

transfers property to a corporation

c$.$

receives bonds in exchange

d$.$

receives stock in exchange