Identify Which of the Following Statements Is False

question 87

Multiple Choice

Identify which of the following statements is false.

• A)When determining the use of an NOL carryover following a change of ownership, the old loss corporation and the new loss corporation may be the same for Sec. 382 purposes.
• B)A new loss corporation that does not continue the business enterprise of the old loss corporation during the two-year period beginning on the date of the stock ownership change cannot use the net operating loss carryover.
• C)One advantage of a tax-free reorganization is that losses realized as part of a tax-free reorganization are not recognized.
• D)For purposes of Sec. 382, ownership changes are tested any time a 5% shareholder has a stock transaction affecting his ownership.

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Definitions:

Navigation Bar

A user interface element within a webpage that contains links to other sections of the website for easy access and navigation.

Chart Of Accounts

A systematic listing of all accounts used by an organization, categorized to simplify the recording of financial transactions.

Disorganization

Disorganization refers to a lack of structure or order, leading to inefficiency and difficulty in finding or placing things.

QBO COA

The Chart of Accounts in QuickBooks Online, a structured list of an organization's financial accounts.