Which of the Following Statements Does Not Describe a Tax

question 94

Multiple Choice

Which of the following statements does not describe a tax consequence to shareholders in a complete liquidation?

• A)All complete liquidations are taxable to the shareholders.
• B)Complete liquidations are taxable to all individual shareholders.
• C)Complete liquidations are taxable to all corporate shareholders owning stock of the liquidated corporation representing less than 80 percent or more of voting power and value.
• D)Complete liquidations are tax-deferred to corporate shareholders owning stock of the liquidated corporation representing 80 percent or more of voting power and value.

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Definitions:

Swing Musician

A musician specializing in the genre of jazz that is characterized by its strong and lively rhythm suitable for dancing.

Two-Beat Rhythm

A musical rhythm pattern that emphasizes beats in a measure of two, common in early jazz and march music.

Jimmie Lunceford

was a prominent African American jazz alto saxophonist and bandleader in the swing era.

Southern Conference for Human Welfare

A groundbreaking 1938 conference aimed at addressing economic and racial injustices in the South.