Identify Which of the Following Statements Is True

question 70

Multiple Choice

Identify which of the following statements is true.

• A)In general, a noncorporate shareholder that receives a distribution in complete liquidation of the liquidating corporation recognizes his or her entire realized gain as a capital gain.
• B)The basis for nonmoney property received by a noncorporate shareholder as part of a liquidating distribution is the same as its basis on the books of the liquidating corporation.
• C)The liquidating corporation does not recognize gains and losses when making a distribution of nonmoney property.
• D)All of the above are false.

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Definitions:

Colors

The property of objects or light that is perceived by the human eye and brain, resulting in different hues and shades.

Illustration

A visual representation or artwork created to complement, elucidate, or decorate written or spoken text.

Component Objects

Individual parts or elements that can be integrated to form a composite object or system in programming and design.

Ungroup

The action of breaking an object that was previously grouped into individual components in graphic or office software.