Identify Which of the Following Statements Is True

question 54

Multiple Choice

Identify which of the following statements is true.

• A) In a tax- free reorganization, if the acquiring corporation uses nonmonetary boot property, gains or losses will be recognized by the acquiring corporation.
• B) In a tax- free reorganization, the acquiring corporation's holding period for the acquired properties includes the period of time the target corporation held the properties.
• C) The receipt of cash by a shareholder results in the recognition of all of his or her realized gain even if the transaction qualifies as a tax- free reorganization.
• D) All of the above are false.

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Definitions:

Convince

To persuade someone to believe something or to take a particular action through argument or evidence.

Expand

To increase in size, volume, quantity, or scope.

Drives And Motivates

The internal and external factors that encourage individuals to take action and persist in achieving goals.

Employer

An individual or organization that hires people to perform work or services in exchange for compensation.