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.

---

Definitions:

Original Cost

The amount initially paid for an asset, not accounting for depreciation, inflation, or market value adjustments.

Short-Term Note

A debt instrument with a maturity of less than one year, used by companies to finance short-term obligations.

Legal Fees

Charges incurred for legal services provided by attorneys or law firms.

Delinquent Taxes

Taxes that have not been paid by the due date, often incurring penalties and interest.