Identify Which of the Following Statements Is True

question 49

Multiple Choice

Identify which of the following statements is true.

• A) In tax- free reorganizations, one transaction cannot qualify for more than one type of tax- free reorganization.
• B) The target corporation in a tax- free reorganization generally recognizes no gain or loss when boot property is received in exchange for assets because such property is usually distributed to its shareholders and creditors when the target corporation is liquidated.
• C) The Sec. 1245 recapture rules override the nonrecognition of gain or loss rules for an asset- for- stock tax- free reorganization.
• D) All of the above are false.

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Definitions:

Crocodile

A large aquatic reptile with a long snout, powerful jaws, and thick scaly skin, found in tropical and subtropical waters.

Teacher

An educator responsible for instructing students in a particular subject or subjects and guiding their intellectual and personal growth.

Saint

A person recognized for having an exceptional degree of holiness, sanctity, and virtue, often canonized by a Christian church.

Statement Form

A type of logical expression that, when its variables are replaced with specific statements, becomes a statement that can be evaluated as true or false.