Identify Which of the Following Statements Is True

question 48

Multiple Choice

Identify which of the following statements is true.

• A)Upon liquidation, any capitalized expenditures unamortized at the time of liquidation should be deducted if they have no further value to the corporation.
• B)Shareholders who receive an installment obligation as part of their liquidating distribution ordinarily report the FMV of their obligation as part of the consideration received to calculate the amount of recognized gain or loss.
• C)A liquidating corporation treats expenses associated with selling its property as an offset against the sales proceeds.
• D)All of the above are true.

---

Definitions:

Spanish-American War

A conflict between the United States and Spain in 1898, resulting in the U.S. gaining territories in the Pacific and the Caribbean, such as Puerto Rico, Guam, and the Philippines.

American Imperialism

A policy aimed at extending the political, economic, and cultural control of the United States government over areas beyond its boundaries.

Benevolent Power

A term used to describe a government or organization exercising power in a kind-hearted or benevolent manner, often with the aim to improve wellbeing.