Question 5 Time left 1:15:49 Not yet answered Fred operated a business for many years and decided to incorporate this business. He has a long time employee, Ethel who he wants to participate in ownership of the business. So he incorporates transferring all of his business assets to the corporation for stock in the corporation. After having his 100% he donates 30% of the stock to Ethel for her past services, she is pleasantly surprised as she didn't think she would ever be involved in the business. Is this a 351 transaction? Marked out of 1.00 Flag question O a. Yes, her transfer was for prior services not for current services so its ok Ob. No, he intended to give her 30% when he incorporated Oc. No, he gave her stock for past services and services take it out of 351 d. Yes, he made the transfer after he finished the incorporation with no prior commitment De No, you should never give an employee stock Previous page