Identify Which of the Following Statements Is True

question 11

Multiple Choice

Identify which of the following statements is true.

• A) A parent corporation cannot liquidate a subsidiary corporation (having but a single class of stock) and avoid recognizing its realized gain unless the parent corporation owns at least 80% of the subsidiary's stock.
• B) The provisions permitting a tax- free liquidation of a subsidiary corporation apply to both corporate and noncorporate shareholders of the subsidiary.
• C) The liquidation of a subsidiary corporation must be completed within one tax year to receive nonrecognition treatment.
• D) All of the above are false.

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Definitions:

Ubiquitousness

The state of being present, appearing, or found everywhere, especially of a concept or technological feature.

Snooping

involves unauthorized access to another person's or company's data or spying on data traffic in networks to capture sensitive information.

Encryption

The process of converting information or data into a code, especially to prevent unauthorized access.

Radio

A technology that uses radio waves to transmit information, such as audio, by modulation of electromagnetic waves.