Jeremy is considering a corporate recapitalization as a gifting technique and has come to his financial planner for more information. Which of the recapitalization are CORRECT?

I. The stock is recapitalized and divided into nonvoting preferred stock and voting common stock.

Il. Jeremy retains control of the corporation through the voting rights associated with his preferred stock.

III. Recapitalization can be used in any corporation.

IV. The gift of stock given to the junior family members may qualify for valuation discounts.

A) I and III

B) I and II

C) II,III and IV

D) II and IV