Identify Which of the Following Statements Is True

question 50

Multiple Choice

Identify which of the following statements is true.

• A)The transferee corporation's acquisition or assumption of liabilities in excess of the total adjusted bases of the properties transferred by a transferor results in a gain recognition by the transferor.
• B)When a transferor exchanges a mortgaged property under Sec. 351 and the amount of the mortgage is greater than the transferor's basis in the property, the transferor's basis in the stock received will be equal to the basis the transferor had in the mortgaged property.
• C)When forming a corporation, the accounts payable of a transferor's business are not liabilities for gain computation purposes if the transferor's business uses the accrual method of accounting.
• D)All of the above are false.

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Definitions:

Surface Acting

Emotional labor that involves managing one's outward expressions and behaviors to meet social or occupational expectations, without altering underlying feelings.

Four-Factor Model

A framework in finance that expands on the three-factor model by adding a moment factor, such as momentum, to market risk, size, and value factors to explain stock returns.

Emotional Expression

The process of conveying feelings, emotions, or mood through verbal or nonverbal behaviors.

Physiological Response

The body's automatic reaction to a stimulus, which can include changes in heart rate, breathing, perspiration, and other bodily functions.