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WGU C239 TEST FULLY SOLVED & UPDATED 2024
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WGU C239 TEST FULLY SOLVED & UPDATED 2024
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WGU C239 TESTFULLY SOLVED &
UPDATED 2024
Sec 351 - answer Three requirements:
1.transferror transfers for property
2. Solely in exchange for the corporation
stock
3. Have to have control immediately
following transaction
Control of 80% of (combined voting and
nonvoting) each voting stock and nonvoting
stock
Not valid with transferring in service and
does not get considered in terms of control
for Sec 351 eligibilty for that trnasferror.
However, if this persons contribution dilutes
the control, then any gain on tranferring
would be taxed to all shareholders.
, The transferrer transferring services could
transfer property at least 10% of the FMV of
the stock being received. This will prevent
the gains being recognized at transfer.
Boot rule - answer Recognized gain is the
lesser of:
Transferrors realized gain or FMV of the boot
received
Boot received in a Sec 351 transaction never
causes a recognition of loss.
Sec 351 transactions when liabilities are
transferred - answer Transferring something
other than property, so there are exceptions
to liabilities being boot which is not normal.
Sec 357(c) =recognized gain is the excess of
liabilities transferred to the corporation
OVER the adjusted basis of all properties
transferred.
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