Problem 2.2 Definition of Control

Prince Corporation currently has 100 shares of Class A voting stock, and 20 shares of Class B non-voting stock issued and outstanding (all common stock). An individual taxpayer contributes highly appreciated assets to the business in return for 200 shares of Class A stock and 10 shares of Class B stock. Assume that both classes of stock have the same value per share.

1. Does this transaction meet the control test under IRC 351?
2. If this doesnt meet the control test, what would you recommend to ensure that it did?
3. What if Class A stock was worth $1 per share, and Class B stock was worth $1,000 per share, how would this change your answer to questions a) and b) above?