Blast Corporation Manufactures Purses and Make- Up Kits

question 108

Multiple Choice

Blast Corporation manufactures purses and make- up kits. The corporation decides to quit manufacturing purses and distributes the assets associated with this division to its shareholders. The distribution of the these assets will be treated as a partial liquidation if

• A) the corporation discontinues the line of business and the transaction is "essentially equivalent to a dividend."
• B) the distribution is "not essentially equivalent to a dividend" and is made within the year a plan of liquidation is adopted or within the succeeding year.
• C) the distribution is made within 24 months of the adoption of a plan of liquidation and the transaction is "not essentially equivalent to a dividend."
• D) the corporation so elects.

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Definitions:

Visual System

The part of the central nervous system that is responsible for processing visual information, consisting of the eyes, optic nerves, brain, and pathways that connect them.

Neurons

Specialized cells within the nervous system that transmit information to other neurons or cells through electrical and chemical signals.

Young-Helmholtz Theory

A theory of color vision that proposes the eye contains three types of color receptors, which are sensitive to red, green, and blue.

Primary Color

One of a small group of colors (typically red, green, and blue for light or cyan, magenta, and yellow for pigment) that can be combined to create a full spectrum of colors.