Identify Which of the Following Statements Is False

question 37

Multiple Choice

Identify which of the following statements is false.

• A)A corporation must file an information return with the Internal Revenue Service within thirty days of adopting a resolution to liquidate.
• B)The adoption of a formal plan of liquidation can provide additional benefits under tax laws to the corporation and its shareholders.
• C)A plan of liquidation must be produced in writing in order to be accepted by the Internal Revenue Service.
• D)The adoption of a plan of liquidation permits a parent corporation a three-year time period to carry out the complete liquidation of its subsidiary.

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Definitions:

Misconduct

Improper or unlawful behavior by an individual, often violating the rules or standards of a profession or organization.

Hydrothermal Rock

A rock that precipitated directly from hot water, either at depth or on the surface.

Metamorphic Rock

A rock changed in the solid state by temperature, pressure, deformation, or chemical reactions that modified a preexisting rock.

Magma

Molten rock, which may or may not contain some crystals, solidified rock, and gas.