Identify Which of the Following Statements Is False

question 80

Multiple Choice

Identify which of the following statements is false.

• A)Minority shareholders involved in a Sec. 332 subsidiary liquidation must recognize a gain or loss under the Sec. 331 general liquidation rules.
• B)The parent corporation takes a basis in property received when liquidating a subsidiary corporation in a Sec. 332 liquidation equal to its basis to the subsidiary corporation.
• C)Section 332 is applicable to both the parent corporation and the minority shareholders if they exist.
• D)Property received by a minority shareholder takes a basis equal to its fair market value.

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Definitions:

Motivating Commitment

The process of encouraging individuals to remain dedicated and persist in their engagement with tasks or goals.

Leading

The act of guiding or influencing others to achieve organizational or group goals through motivation and leadership skills.

Resources

Assets, materials, and inputs required by an organization or individual to achieve objectives.

Legitimate Power

is a type of authority that is recognized and accepted by members of an organization, stemming from a formal position or role.