Lesson 3A In Class Exercise-Control 

In which of the following independent situations is the Section 351 control requirement met?

a.	Olive Oil transfers property to Spinach Corporation for 75% of Spinach stock and Popeye provides Services to Spinach Corporation for the remaining 25% of the shares.

b.	Pete transfers property to Target Corporation for 60% of Target’s stock, and Robert transfers property worth $15,000 and performs services worth $25,000 for the remaining 40% of Target’s stock.

c.	Fred and his wife Wilma each have owned 50 of the 100 outstanding shares of Bedrock Corporation since it was formed 5 years ago.  In the current year, their daughter Pebbles transfers property to Bedrock Corp. for 50 newly issued shares of its stock.

d.	Charles and Diana develop a plan to form Buckingham Corporation.  On June 3 of this year, Charles transfers property worth $50,000 for 50 shares of Buckingham stock.  On August 1, Diana transfers $50,000 for 50 shares of Buckingham stock.  

e.	Assume the same facts as part d, except that Charles sells 30 of his shares to Camilla on October 1.