Identify Which of the Following Statements Is True

question 94

Multiple Choice

Identify which of the following statements is true.

• A) When a transferor exchanges a mortgaged property under Sec. 351 and the amount of the mortgage is greater than the transferor's basis in the property, the transferor's basis in the stock received will be equal to the basis the transferor had in the mortgaged property.
• B) The transferee corporation's acquisition or assumption of liabilities in excess of the total adjusted bases of the properties transferred by a transferor results in a gain recognition by the transferor.
• C) When forming a corporation, the accounts payable of a transferor's business are not liabilities for gain computation purposes if the transferor's business uses the accrual method of accounting.
• D) All of the above are false.

---

Definitions:

Dual Theoretical Foundation

A concept or approach that is based on two distinct theoretical frameworks or principles.

Class B Instrument

A classification for instruments that have moderate precision and are used in various scientific and industrial measurements.

Standard Score Mean

A statistical measure that indicates how many standard deviations an observation or datum is from the mean of a distribution.

Analytic Intelligence

A type of intelligence which includes executive processes such as analyzing, comparing, and evaluating.