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.

---

Definitions:

Behavioral Resources

Assets or strategies an individual can draw upon to adjust behavior in order to achieve personal or social goals.

Multidimensional Concept

An idea or principle that has multiple aspects or factors contributing to its overall understanding.

Adapting

The process of adjusting or modifying oneself or one's actions to suit new conditions or environments.

Traumatic Events

Incidents that cause psychological, physical, or emotional distress or harm, often leading to lasting mental health issues such as PTSD.