all other shareholder qualify for Section 351, how to determine if Shareholder D, who contributes service and tangible property to corporation in exchange for stock, is qualify for Section 351 and if Shareholder D is in the control group

all other shareholder qualify for Section 351, how to determine if Shareholder D, who contributes service and tangible property to corporation in exchange for stock, is qualify for Section 351 and if Shareholder D is in the control group

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter20: Corporations: Distributions In Complete Liquidation And An Overview Of Reorganizations

Section: Chapter Questions

Problem 4DQ

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Why must an S corporation report separately stated items to its shareholders? How is the character of a separately stated item determined? How does the S corporation report this information to each shareholder?
What is the control requirement of § 351? Describe the effect of the following in satisfying this requirement: A shareholder renders only services to the corporation for stock. A shareholder renders services and transfers property to the corporation for stock. A shareholder has only momentary control after the transfer. A long period of time elapses between the transfers of property by different shareholders.
What are fhe basic rights of a shareholder?
1.Which of the following is NOT one of the basic shareholder's rights? Which of the following is NOT one of the basic shareholder's rights? The right to participate in the proceeds of the sale of the corporation upon liguidation. The right to inspect the records of the corporation The right to maintain one's proportional interest in the corporation. The right to participate in earnings 2.
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What is a shareholder's basis in S corporation stock received for services rendered? - The average fair market value of the S corporation's stock during the time that the services were rendered. - The fair market value of the S corporation's stock at the time of transfer. - The fair market value of the services rendered, as determined by the Bureau of Labor Statistics. - The value of the services rendered, as determined by what the shareholder normally changes.
Which of the following is not a right of an ordinary shareholder? Select one: O a. None of the answers are correct. O b. Right to receive dividends. O C Share in assets at liquidation. Od. Right to record cash transactions. O e. Right to vote and elect the board of directors.
Establish the required qualifications to become an S versus a C corporation.