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:

Devil's Advocate

The act of taking a position or argument one does not necessarily agree with for the sake of debate or to explore the thought process behind opposing viewpoints.

Groupthink

A psychological phenomenon where the desire for harmony and conformity in a group leads to irrational or dysfunctional decision-making outcomes.

Risky Shift

A phenomenon where groups tend to make riskier decisions together than individuals would when making decisions alone.

Individual Decision

A decision-making process where a single person makes a choice based on their judgment and information available to them.