If a Corporation Distributes Appreciated Property to Its Shareholders, the Corporation

question 91

True/False

If a corporation distributes appreciated property to its shareholders, the corporation is treated as if it sold the property to the shareholders for its FMV immediately before the distribution, and the corporation will recognize any realized gain.

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Definitions:

Social Inequality

Exists when certain attributes affect a person’s access to socially valued resources.

Individual Attributes

The characteristics or qualities that define a person, such as physical features, personality traits, and abilities.

Economic Classes

Categories of people within a society who share similar socio-economic statuses, often determined by income, wealth, occupation, and education.

Ownership of Property

The legal right or interest that an individual or entity has in an asset, including tangible and intangible assets.