Match the Following Items with the Statements That Follow

question 31

Multiple Choice

Match the following items with the statements that follow. Terms may be used more than once.
-Shareholders recognize gain to the extent the restructuring qualifies as a redemption.

• 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

---

Definitions:

Rapa Nui

The indigenous name for Easter Island, known for its monumental statues called moai, created by the early Rapa Nui people.

Poverty Bay

A bay on the east coast of the North Island of New Zealand, known for its historical significance and as the first landing place of Captain James Cook in New Zealand.

Caroline Islands

A widely scattered archipelago in the western Pacific Ocean, comprising both the Federated States of Micronesia and Palau.

East Sepik

A province in Papua New Guinea, recognized for its rich cultural tapestry, intricate art traditions, and the Sepik River, a significant cultural and environmental landmark.