Match the Following Items with the Statements That Follow

question 133

Multiple Choice

Match the following items with the statements that follow. Terms may be used more than once.
-Apple Corporation transfers voting stock to Orange Corporation in exchange for substantially all of its assets and its liabilities associated with the plant and equipment. Its general liabilities are not acquired by Apple. Orange distributes the Apple stock to its shareholders in exchange for their Orange stock. Orange then 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:

Schema

A cognitive framework or concept that organizes and interprets information in the brain, helping to understand and respond to the environment.

General Framework

A broad structure or set of guidelines designed to outline approaches or methods within a particular field or for a specific process.

Piaget

A Swiss developmental psychologist and philosopher known for his pioneering work on children's cognitive development, Jean Piaget proposed stages of development that children progress through as they mature.

Knowledge Construction

The dynamic process through which individuals create and organize understanding or insights by synthesizing new information with existing knowledge.