Match the Following Items with the Statements Below

question 114

Multiple Choice

Match the following items with the statements below. Terms may be used more than once.
-Snow Corporation, located in Washington State, establishes Rain Corporation, located in Arizona. Snow then transfers all of its assets to Rain in exchange for all of Snow's stock. After distributing the Rain stock to its shareholders, Snow liquidates.

• A)Boot
• B)Business credits
• C)Capital gain
• D)Continuity of business enterprise
• E)Continuity of interest
• F)Dividend
• G)Discount rate
• H)Earnings and profits
• I)​Federal long-term tax-exempt rate
• J)Liability assumption
• K)Ordinary gain
• L)Ownership change
• M)Section 382 limitation​
• N)Sound business purpose
• O)Step transaction

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Definitions:

Draw

To produce a picture or diagram by making lines and marks on paper with a pencil, pen, etc., or within the context of games, a result in which opponents finish with equal scores.

Spades

A suit in a standard deck of playing cards, identified by its black, pointed leaf shape symbol.

Dealt

Distributed or administered in a specific manner.

Chances

The likelihood or probability of an event happening, often expressed as a percentage or ratio.