A Liquidating Corporation

question 93

Multiple Choice

A liquidating corporation

• A)recognizes gains and losses on the distribution of property.
• B)never recognizes gains and losses on the distribution of property.
• C)recognizes gains and losses only on the distribution of the specific property contributed in a Section 351 transaction.
• D)recognizes gains,but not losses,on the distribution of property.

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Definitions:

Comparative Fault

A legal doctrine that reduces the amount of damages a plaintiff can recover in a negligence-based lawsuit, based on the degree to which the plaintiff's own negligence contributed to the harm.

Assumption of Risk

A legal defense that claims an individual voluntarily and knowingly assumed the danger inherent to a risky activity they participated in.

Section 402A

A section of the Restatement (Second) of Torts in American law that addresses the liability of the seller for harm caused by a product despite the absence of a contractual relationship.

Preemption

A legal doctrine under which a higher authority's laws take precedence over those of a lower authority when both entities have the power to legislate on a subject.