Identify Which of the Following Statements Is True

question 80

Multiple Choice

Identify which of the following statements is true.

• A)Able Corporation (New York)transfers its assets to Able Corporation (Delaware)in exchange for all of its stock. Able Corporation (New York)is liquidated. This exchange is a Type F reorganization.
• B)Strict adherence to legislative guidelines with regard to reorganizations is sufficient for tax-free treatment.
• C)A suitable business purpose for a tax-free reorganization is to permit the minimization of shareholder taxes.
• D)All of the above are false.

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Definitions:

Cochlea

A coiled, bony, fluid-filled tube in the inner ear that houses the sensory receptors.

Auditory Nerve

The nerve that transmits auditory information from the cochlea in the inner ear to the brain.

Higher-Frequency Sounds

Sounds that have a higher pitch due to their faster vibration rates, typically above the normal human hearing range of 20 to 20,000 hertz.

Cochlea

A spiral-shaped, fluid-filled inner ear structure that is responsible for converting sound waves into nerve impulses.