When Gain Is Realized by a Target Corporation from Disposing

question 29

Multiple Choice

When gain is realized by a target corporation from disposing of its assets in a tax- free reorganization, the gain is

• A) recognized if boot is received and immediately distributed to its shareholders.
• B) recognized if boot is received and retained.
• C) recognized without exception.
• D) never recognized.

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Definitions:

Central Nervous System

The part of the nervous system that includes the brain and spinal cord.

Spinal Cord

The long, thin, tubular bundle of nervous tissue and support cells that extends from the brain down the length of the back, integral for transmitting nerve signals.

Autonomic Nervous System

A division of the peripheral nervous system that controls involuntary functions of the body, such as heart rate, digestion, and respiratory rate.

Cranial Nerves

Twelve pairs of nerves that originate in the brain and serve various sensory and motor functions of the head and neck.