Identify Which of the Following Statements Is True

question 41

Multiple Choice

Identify which of the following statements is true.

• A)Property contributions to a corporation by nonshareholders will result in income recognition by the corporation if the contributed property is subsequently sold.
• B)Section 1244 ordinary loss treatment is available to any shareholder.
• C)A taxpayer must make a special election to take advantage of Sec.1244.
• D)All of the above are false.

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Definitions:

Obligation

A duty or commitment that one is bound to, legally or morally, which often involves completing certain actions or adhering to agreements.

Social Responsibility

The idea that businesses should balance profit-making activities with activities that benefit society; it involves developing businesses with a positive relationship to the society in which they operate.

Positive Impact

The beneficial effect that one's actions or policies have on individuals, communities, environments, or markets.

Negative Impact

The adverse effects or harm that an action or decision may cause to individuals, communities, or the environment.