Identify Which of the Following Statements Is True

question 70

Multiple Choice

Identify which of the following statements is true.

• A)In general, a noncorporate shareholder that receives a distribution in complete liquidation of the liquidating corporation recognizes his or her entire realized gain as a capital gain.
• B)The basis for nonmoney property received by a noncorporate shareholder as part of a liquidating distribution is the same as its basis on the books of the liquidating corporation.
• C)The liquidating corporation does not recognize gains and losses when making a distribution of nonmoney property.
• D)All of the above are false.

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Definitions:

Character Traits

Enduring qualities or features of an individual's personality that are evident in their behavior and attitudes.

Ethical Behavior

Acting in ways consistent with societal norms and values, including honesty, fairness, and integrity, particularly in professional settings.

Morally Disengage

The psychological process where individuals justify their unethical actions to themselves or others, thus easing the guilt associated with such behaviors.

Insurance Company

A business that provides coverage, in the form of compensation resulting from loss, damages, injury, treatment, or hardship in exchange for premium payments.