Identify Which of the Following Statements Is False

question 45

Multiple Choice

Identify which of the following statements is false.

• A) The parent corporation takes a basis in property received when liquidating a subsidiary corporation in a Sec. 332 liquidation equal to its basis to the subsidiary corporation.
• B) Property received by a minority shareholder takes a basis equal to its fair market value.
• C) Section 332 is applicable to both the parent corporation and the minority shareholders if they exist.
• D) Minority shareholders involved in a Sec. 332 subsidiary liquidation must recognize a gain or loss under the Sec. 331 general liquidation rules.

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Definitions:

Random Assignment

A method used in experiments to distribute participants randomly across different groups to ensure unbiased results.

Demand Characteristics

Implicit cues in an experiment that influence the participants' behavior towards a particular outcome.

Random Assignment

A method used in experiments to divide individuals into groups in a way that every participant has an equal chance of being assigned to any group, helping to ensure that the groups are comparable.

Independent Variable

The variable in an experiment that is manipulated or changed to observe its effect on a dependent variable.