Identify Which of the Following Statements Is False

question 45

Multiple Choice

Identify which of the following statements is false.

• A) The parent corporation takes a basis in property received when liquidating a subsidiary corporation in a Sec. 332 liquidation equal to its basis to the subsidiary corporation.
• B) Property received by a minority shareholder takes a basis equal to its fair market value.
• C) Section 332 is applicable to both the parent corporation and the minority shareholders if they exist.
• D) Minority shareholders involved in a Sec. 332 subsidiary liquidation must recognize a gain or loss under the Sec. 331 general liquidation rules.

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Definitions:

Stereotype Threat

Refers to the harmful impact of negative stereotypes on the school performance of disadvantaged groups.

Negative Impact

An adverse effect or harm that is caused by an action, event, or situation.

Disadvantaged Groups

Communities or populations that experience social, economic, or political barriers due to various factors, leading to inequality and limited opportunities.

Culturally Biased

Culturally biased pertains to judgments or actions that are unfairly influenced by specific cultural norms, leading to discrimination or misunderstanding of other cultures.