Identify Which of the Following Statements Is True

question 72

Multiple Choice

Identify which of the following statements is true.

• A) Properties acquired by a liquidating corporation as a capital contribution occurring within three years of the adoption of a plan of liquidation are generally presumed to have a tax avoidance motive.
• B) The loss realized on the sale of a property is disallowed when such property was received by a corporation as a contribution of capital in a transaction having as its principal purpose the recognition of loss pursuant to the corporation's subsequent liquidation later in the same taxable year.
• C) Losses claimed in a tax return filed before the adoption of the plan of liquidation are not restricted by Sec. 336(d)(2).
• D) All of the above are false.

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Definitions:

Psychosexual Theory

Sigmund Freud's theory that child development occurs in a series of stages, each characterized by different demands for sexual satisfaction.

Genital Stage

A phase in Freud's psychosexual development focused on mature sexual interests and activities, usually beginning in puberty.

Anal

Pertaining to the anus, often used in a psychological context to describe personality traits associated with the anal stage of psychosexual development.

Oral

Relates to the mouth, including the act of speaking or consuming, often used in contexts ranging from communication methods to intake of food and medicine.