Identify Which of the Following Statements Is True

question 35

Multiple Choice

Identify which of the following statements is true.

• A) Nonrecognition of gain or loss rules apply to a subsidiary corporation when, pursuant to its complete liquidation, the subsidiary transfers property to a third- party creditor.
• B) The Sec. 332 nonrecognition rules apply to the parent corporation when a subsidiary corporation transfers property to the parent corporation in payment of the subsidiary's debt obligation.
• C) A subsidiary corporation is prevented from recognizing gain or loss when transferring property to its parent corporation in satisfaction of an indebtedness it owes to the parent corporation as part of its complete liquidation.
• D) All of the above are false.

---

Definitions:

Adipose Tissue

Tissue in which fat is stored.

Chemical Signals

Molecules released by cells to communicate with other cells, often regulating biological processes by binding to receptors on target cells.

Electrical Signals

The transmission of information through a biological organism or artificial device using changes in electrical potential.

Associated Tissues

Tissues that are connected in function or location, often used in biological contexts to describe how different types of tissues work together in organs or systems.