Which of the Following Statements Best Describes the Tax Results

question 61

Multiple Choice

Which of the following statements best describes the tax results to a shareholder in a §351 transaction when liabilities on property transferred to the corporation are assumed by the corporation?

• A)Liabilities assumed by a corporation on a §351 transfer are always treated as boot.
• B)Liabilities assumed by a corporation on a §351 transfer are never treated as boot.
• C)Liabilities assumed by a corporation on a §351 transfer are treated as boot if the total liabilities assumed exceed the total basis of the assets transferred.
• D)Liabilities assumed by a corporation on a §351 transfer are treated as boot if there is no business purpose for the assumption of the liabilities by the corporation.

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Definitions:

Attrition

The reduction in the number of research participants or subjects as some drop out over the course of a study.

Research Participants

Individuals or subjects who partake in a research study, contributing data through their responses or behavior.

Single Blinding

A method in research design where the participants do not know which group (control or experimental) they belong to, but the researchers do.

Longitudinal Design

A research strategy that involves repeatedly observing the same subjects over a period of time, often several years or more, to track changes or developments.