Identify Which of the Following Statements Is True

question 81

Multiple Choice

Identify which of the following statements is true.

• A)The target corporation in a tax-free reorganization generally recognizes no gain or loss when boot property is received in exchange for assets because such property is usually distributed to its shareholders and creditors when the target corporation is liquidated.
• B)In tax-free reorganizations, one transaction cannot qualify for more than one type of tax-free reorganization.
• C)The Sec. 1245 recapture rules override the nonrecognition of gain or loss rules for an asset-for-stock tax-free reorganization.
• D)All of the above are false.

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Definitions:

Cancer Patients

Individuals diagnosed with cancer, undergoing treatment, or in remission from the disease.

Diffusion of Responsibility

A phenomenon where individuals are less likely to take action or feel a sense of responsibility in the presence of others, typically in emergency situations.

Social Loafing

The phenomenon where individuals exert less effort when working in a group than when working alone.

Independence

The state or quality of being self-reliant, free from external control or support.