Identify Which of the Following Statements Is True

question 101

Multiple Choice

Identify which of the following statements is true.

• A)A loss recognized by a shareholder upon complete liquidation of a corporation may not qualify for ordinary loss treatment if the stock is Sec. 1244 stock.
• B)The loss that is recognized by an individual shareholder on the liquidation of a corporation is a capital loss, up to certain limits, if the stock is Sec. 1244 stock.
• C)The loss recognized by a corporate shareholder on the worthlessness of the controlled subsidiary's stock is an ordinary loss.
• D)All of the above are false.

---

Definitions:

Grasslands

Large, open areas where the dominant vegetation consists of grasses, often found in regions with moderate to semi-arid climates.

Biological Magnification

The increasing concentration of a substance, such as a toxic chemical, in the tissues of organisms at successively higher levels in a food chain.

Food Chain

A series of organisms each dependent on the next as a source of food, representing the flow of energy and nutrients in an ecosystem.

Chemical Pollutant

Substances introduced into the environment that pose risks or harm to ecosystems, animals, or human health, often resulting from industrial, agricultural, or urban activities.