Identify Which of the Following Statements Is True

question 31

Multiple Choice

Identify which of the following statements is true.

• A)The method of accounting used by shareholders involved in a complete liquidation is relevant when determining the year in which the shareholder's gain or loss should be reported.
• B)An accrual method of accounting taxpayer recognizes his/her realized gain on a corporate liquidation when there has been actual or constructive receipt of the liquidating distribution(s).
• C)If a shareholder assumes or acquires liabilities of the liquidating corporation, the amount of these liabilities does not reduce the amount realized by the shareholder.
• D)All of the above are false.

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Definitions:

Enactive Attainment

The process of learning new skills or behaviors through direct experience and practice.

Activity

Actions or tasks performed by individuals, often contributing to achieving a particular goal or purpose.

Human Nature

The general psychological characteristics, feelings, and behavioral traits of humankind, regarded as shared by all humans.

Self-actualization

Describes the realization or fulfilment of one's talents and potentialities, especially considered as a drive or need present in everyone.