Match the Following Statements

question 86

Multiple Choice

Match the following statements.
-Sale of the individual assets of an unincorporated sole proprietorship by the owner.

• A)Transaction in this form enables double taxation to be avoided.
• B)Gain or loss is calculated separately for each asset and is subject to single taxation.
• C)This is subject to double taxation.
• D)The sale is treated as the sale of a capital asset under § 741 but subject to ordinary income potential under §
• 751.
• E)This is not subject to double taxation on the sale of corporate stock.

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Definitions:

Paid-In Capital

The total amount of capital that shareholders have directly contributed to a company in exchange for shares.

Treasury Stock

Refers to previously issued stock that has been bought back by the issuing company, held in its own treasury, and not retired.

Treasury Stock

Shares that were once part of the outstanding shares but were bought back by the issuing company.

Common Stock

A type of equity security that represents ownership in a corporation, giving holders voting rights and a share in the company's profits through dividends.