Identify Which of the Following Statements Is True

question 90

Multiple Choice

Identify which of the following statements is true.

• A)The loss realized on the sale of a property is disallowed when such property was received by a corporation as a contribution of capital in a transaction having as its principal purpose the recognition of loss pursuant to the corporation's subsequent liquidation later in the same taxable year.
• B)Losses claimed in a tax return filed before the adoption of the plan of liquidation are not restricted by Sec. 336(d)(2).
• C)Properties acquired by a liquidating corporation as a capital contribution occurring within three years of the adoption of a plan of liquidation are generally presumed to have a tax avoidance motive.
• D)All of the above are false.

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Definitions:

Flashbacks

Sudden, intense, involuntary re-experience of past memories or traumatic events, often a symptom of PTSD.

PTSD

Post-Traumatic Stress Disorder, a mental health condition triggered by experiencing or witnessing a terrifying event, characterized by flashbacks, nightmares, and severe anxiety.

Reexperiencing

The involuntary reliving of traumatic events, often a symptom of PTSD.

Wounds Dehisced

A surgical complication where a wound ruptures along a surgical incision, often due to improper healing or infection, leading to the separation of the previously joined edges.