Property Distributed by a Corporation as a Dividend Is Subject

question 183

True/False

Property distributed by a corporation as a dividend is subject to a liability in excess of its basis. For purposes of determining gain on the distribution, the basis of the property is treated as being not less than the amount of liability.

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Definitions:

Enterprise Resource Planning

A software system that integrates core business processes, such as finance, HR, and supply chain, to streamline operations and facilitate information flow.

Application Service Provider

A business providing computer-based services to customers over a network; software offered using a SaaS model that allows users to access software online.

Application Maintenance Provider

A service provider that offers support, updates, and maintenance for software applications.