Identify Which of the Following Statements Is True

question 25

Multiple Choice

Identify which of the following statements is true.

• A)The step-transaction doctrine has always been used by the IRS to convert a tax-free transaction into a taxable transaction.
• B)Tax attributes carry over from the target corporation to the acquiring corporation in all acquisitive reorganizations.
• C)In a Type A reorganization, the net operating loss carryover can be used by the acquiring corporation without limitation in its first tax year that ends after the acquisition date.
• D)All of the above are false.

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Definitions:

Choanoflagellates

Aquatic microorganisms thought to be the closest living relatives of animals, characterized by their flagellum and collar structure.

Foraminiferans

Marine protozoans characterized by their porous shells, or tests, through which pseudopodia extend for feeding and locomotion.

Rhizarians

A group of mostly unicellular eukaryotes, characterized by their production of pseudopods, which are extensions used for movement and feeding.

Freshwater Algae

Simple, often microscopic, plant-like organisms that live in fresh water and are capable of photosynthesis.