Under Code § 355, Nonrecognition of Gain or Loss Is

question 30

Multiple Choice

Under Code § 355, nonrecognition of gain or loss is granted only to distributions of stock or securities of a "controlled" corporation.Control is present where

• A)The distributing parent corporation owns at least 80 percent of the voting power of all classes of the subsidiary's stock entitled to vote, and at least 50 percent of the total number of shares of all other classes of stock.
• B)The distributing parent corporation owns at least 51 percent of the voting power of all classes of the subsidiary's stock entitled to vote, and at least 51 percent of the total number of shares of all other classes of stock.
• C)The distributing parent corporation owns at least 80 percent of the voting power of all classes of the subsidiary's stock entitled to vote, and at least 80 percent of the total number of shares of all other classes of stock.
• D)None of the above is true.

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Definitions:

Neurotransmitter

Biological chemicals that transmit signals across a synapse from one neuron to another in the brain and nervous system, influencing mental health and functioning.

Nonmedical Prescription

The use of prescription drugs without a medical need or prescription, typically for recreational use or abuse.

Opiate Use

The consumption of opiate drugs, which can include both legal prescriptions for pain or illicit drugs like heroin.

Addiction Potential

Refers to the likelihood that a substance or behavior will lead to addiction.