Identify Which of the Following Statements Is False

question 83

Multiple Choice

Identify which of the following statements is false.

• A)The acquiring corporation does not recognize gains or losses under Sec. 1001 when it transfers noncash boot property to the target corporation or its shareholders.
• B)Gain recognized by a shareholder in a tax-free reorganization may be characterized as a dividend.
• C)If no gain or loss is recognized by a stock or security holder in a tax-free reorganization, the stock or securities received take a substituted basis equal to the basis of the shares or securities surrendered.
• D)Tax-free reorganizations generally do not involve actual redemptions of the stock of the target corporation's shareholders.

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Definitions:

KCl

Potassium chloride, a metal halide salt composed of potassium and chlorine, used in medicine, food processing, and scientific applications.

Moles

A chemical unit of measure that denotes an amount of substance containing approximately 6.022 x 10^23 particles.

Water

A chemical compound with the formula H2O, consisting of two hydrogen atoms bonded to an oxygen atom, essential for most forms of life.

Moles

A unit of measurement used in chemistry to express amounts of a chemical substance, defined as the amount containing exactly 6.02214076×10²³ particles.