C owns all of the stock of Z corporation, which is worth $1 million. Z wants to

Question

C owns all of the stock of Z corporation, which is worth $1 million. Z wants to acquire land worth $75000 from D. C proposes to transfer $1 of cash to Z at the same time D transfers the land to Z. Each C and D will receive stock. A. This is a good Section 351 transaction. D will not recognize loss and Z corp will take a higher carry-over basis from D. B. This is not a good section 351 transaction since C is transferring de minimus amount of property per regulation 1.351 (a) (1) (ii) C. Netiher of the above

Explanation / Answer

C. Netiher of the above

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