Identify Which of the Following Statements Is True

question 43

Multiple Choice

Identify which of the following statements is true.

• A)Ann, Dewey Corporation's sole shareholder, exchanges her Dewey stock having a $400,000 FMV and a $175,000 adjusted basis for $350,000 of Heider Corporation stock and $50,000 cash. Ann realizes a $225,000 gain on the stock transfer, none of which is recognized.
• B)A Type B reorganization can be accomplished without formal shareholder approval.
• C)The target corporation's tax attributes are lost in a Type B reorganization.
• D)All of the above are false.

---

Definitions:

Labor Force

The total number of people employed or available for employment in an economy.

Stay-at-Home Moms

Mothers who choose to not work outside the home in order to focus on childcare and managing their household.

Two-Income Parents

Households in which both parents are employed and contribute to the family's income, often for financial stability or to achieve a higher standard of living.

Parenting Duties

Responsibilities and tasks involved in raising children, including providing for their physical, emotional, and educational needs.