Identify Which of the Following Statements Is True

question 35

Multiple Choice

Identify which of the following statements is true.

• A) Nonrecognition of gain or loss rules apply to a subsidiary corporation when, pursuant to its complete liquidation, the subsidiary transfers property to a third- party creditor.
• B) The Sec. 332 nonrecognition rules apply to the parent corporation when a subsidiary corporation transfers property to the parent corporation in payment of the subsidiary's debt obligation.
• C) A subsidiary corporation is prevented from recognizing gain or loss when transferring property to its parent corporation in satisfaction of an indebtedness it owes to the parent corporation as part of its complete liquidation.
• D) All of the above are false.

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Definitions:

Standard Deviation

An indicator that quantifies the spread or diversity among data set values, showing the degree to which these values deviate from the average.

Mean

The arithmetic average of a set of numbers, calculated by adding up all the values and dividing by the number of values.

Pounds

A unit of weight commonly used in the United States and the United Kingdom, equivalent to 0.453592 kilograms.

Standard Deviation

A measure of the amount of variation or dispersion of a set of values, indicating how spread out the values are around the mean.