Which of the Following Transactions Would Result in the Taxpayer

question 47

Multiple Choice

Which of the following transactions would result in the taxpayer being able to make a life- time capital gains deduction?

• A)An individual sells 100 percent of the shares of a CCPC that uses 85 percent of its as- sets in the operation of an active business.
• B)An individual sells 15 percent of the shares of a CCPC that uses 95 percent of its assets in the operation of an active business.
• C)A CCPC sells 100 percent of the shares of another CCPC that uses 100 percent of its as- sets in the operation of an active business.
• D)An individual sells 25 percent of the shares of a CCPC that uses 30 percent of its assets to produce property income.

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Definitions:

mRNA

Messenger RNA, a single-stranded RNA molecule that conveys genetic information from DNA to the ribosome, where proteins are synthesized.

Genetic Code

Complete set of sixty-four mRNA codons.

mRNA Codons

Triplets of nucleotides in messenger RNA that specify the addition of a specific amino acid or the termination of translation.

Cytoplasm

Semifluid substance enclosed by a cell’s plasma membrane.