Identify Which of the Following Statements Is True

question 32

Multiple Choice

Identify which of the following statements is true.

• A)A liquidating distribution of property other than a disqualified property that is made ratably to all shareholders (based on their stockholdings)will permit the recognition of loss on the portion of the distribution that is made to a related person.
• B)A subsidiary corporation can recognize losses on distributions to either the parent corporation or minority shareholders in a Sec. 332 liquidation.
• C)Section 336 prevents recognition of a loss when making a pro rata distribution of property to a related person.
• D)All of the above are false.

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Definitions:

Rationalizing Inconsistency

The mental process of making illogical or inconsistent elements seem logical or consistent as a way to justify actions or beliefs.

Beliefs

Mental acceptance or conviction in the truth or actuality of something, often without complete proof.

Attitudes

Psychological tendencies expressed by evaluating a particular entity with some degree of favor or disfavor.

Antecedent-Focused Strategy

involves dealing with potential stressors or emotional responses before they occur, as a means of regulating emotions effectively.