Identify Which of the Following Statements Is True

question 61

Multiple Choice

Identify which of the following statements is true.

• A)Depreciation recapture rules do not override the nonrecognition of gain or loss rules.
• B)The acquisition of liabilities by an acquiring corporation will trigger a gain.
• C)A target corporation will recognize a gain when it distributes stock to its shareholders.
• D)The basis of property acquired in a reorganization is its FMV.

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Definitions:

Trickle-Down Theory

The assertion that stimulating overall economic growth will ultimately help the poor.

Economic Growth

An increase in the production of economic goods and services, compared from one period of time to another, and often measured by GDP (Gross Domestic Product).

Wealth Flows

The movement of financial resources and assets between individuals, families, or countries, impacting economic stability and development.

International Labour Organization

A United Nations agency founded in 1919 that sets international labor standards and promotes rights at work, encouraging decent employment opportunities and enhancing social protection.