Identify Which of the Following Statements Is False

question 80

Multiple Choice

Identify which of the following statements is false.

• A)Minority shareholders involved in a Sec. 332 subsidiary liquidation must recognize a gain or loss under the Sec. 331 general liquidation rules.
• B)The parent corporation takes a basis in property received when liquidating a subsidiary corporation in a Sec. 332 liquidation equal to its basis to the subsidiary corporation.
• C)Section 332 is applicable to both the parent corporation and the minority shareholders if they exist.
• D)Property received by a minority shareholder takes a basis equal to its fair market value.

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Definitions:

Cashier's Check

A check issued by a bank, drawn from its own funds and signed by a cashier or teller, guaranteeing payment to the payee.

Telephone Consumer Protection Act

A law enacted in 1991 in the United States that restricts telemarketing and the use of automated telephone equipment.

Telephone Solicitation

The practice of contacting individuals by phone to promote services or products, often unsolicited.

Limited Check

A check that is void after a certain time limit; commonly used for payroll.