One Consequence of a Property Distribution by a Corporation to a Shareholder

question 80

Multiple Choice

One consequence of a property distribution by a corporation to a shareholder is that

• A) the shareholder's basis in the distributed property is the same as the distributing corporation's basis.
• B) the amount of the distribution is increased by any liability assumed by the shareholder.
• C) any liabilities assumed by the shareholder do not reduce the shareholder's basis.
• D) the holding period of the distributed property includes the holding period of the distributing corporation.

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Definitions:

Hypertension

Elevated blood pressure.

Coronary Artery Disease

A condition characterized by the narrowing of the coronary arteries due to the buildup of plaque, which can lead to reduced blood flow to the heart.

Leukemia

A disease characterized by a great excess of white blood cells; it exists in a lymphatic and myelogenous form; it is often fatal, especially in adults.

Lung Disease

A general term for diseases and disorders that affect the lungs and respiratory system, leading to difficulty in breathing and other related symptoms.