The Amount of a Corporate Distribution Qualifying for Capital Recovery

question 235

True/False

The amount of a corporate distribution qualifying for capital recovery treatment which exceeds the shareholder- recipient's basis in the stock investment is treated as a capital gain.

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Definitions:

Circumduction

A circular movement of a limb or eye where the end follows a circular path.

Lateral Flexion

The movement of bending sideways at the waist or neck, reducing the angle between the side of the body or head and the arms or legs.

Opposition

The movement of the thumb to touch the tips of the other fingers on the same hand, enabling grasping and manipulation of objects.

Adduction

The movement of a body part toward the central axis of the body or toward another part, as in bringing arms or legs closer to the torso.