Answer:
C. The transferor's (shareholder's) holding period for the stock includes the holding period of any capital assets or Sec. 1231 assets transferred. If the shareholder transfers any other property, the holding period for any stock received begins on the date after the exchange date.
Explanation:
Transferors does experience any gain or loss when they exchange property for stock even the non - cash property received. The gain been received, does not depend on the type of property transferred.