One Consequence of a Property Distribution by a Corporation to a Shareholder

question 87

Multiple Choice

One consequence of a property distribution by a corporation to a shareholder is that

• A)the amount of the distribution is increased by any liability assumed by the shareholder.
• B)the holding period of the distributed property includes the holding period of the distributing corporation.
• C)the shareholder's basis in the distributed property is the same as the distributing corporation's basis.
• D)any liabilities assumed by the shareholder do not reduce the shareholder's basis.

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Definitions:

Equal Opportunities

Policies and practices that aim to eliminate discrimination and ensure fairness and justice in employment and access to services and opportunities.

Accounting Fraud

Deliberate manipulation or falsification of financial records to misrepresent a company's financial position, often for personal gain.