Which of the Following Statements Does Not Describe a Tax

question 30

Multiple Choice

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

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

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Definitions:

Substantially Indistinguishable

means so similar in all important respects that it is difficult to differentiate between the items or concepts being compared.

Infringement

Refers to the violation of a law or a right, especially intellectual property rights such as patents, trademarks, or copyrights.

Confusion

A state of being bewildered or unclear in one’s mind about something.

Lanham Act

A federal statute enacted in 1946 that governs trademarks, service marks, and unfair competition in the United States.