Identify Which of the Following Statements Is True

question 57

Multiple Choice

Identify which of the following statements is true.

• A) Section 336 prevents recognition of a loss when making a pro rata distribution of property to a related person.
• B) A liquidating distribution of property other than a disqualified property that is made ratably to all shareholders (based on their stockholdings) will permit the recognition of loss on the portion of the distribution that is made to a related person.
• C) A subsidiary corporation can recognize losses on distributions to either the parent corporation or minority shareholders in a Sec. 332 liquidation.
• D) All of the above are false.

---

Definitions:

Rotator Cuff Lesions

Injuries to the group of muscles and tendons that stabilize the shoulder joint, resulting in pain, weakness, and reduced range of motion.

Muscle Spasms

Sudden, involuntary contractions or seizures of muscles that can cause pain or discomfort.

Medial And Lateral Epicondyle

Bony prominences found on the distal end of the humerus, important in the attachment of forearm muscles.

Annular Ligament

A circular band of connective tissue that stabilizes the joint, preventing dislocation.