Which of the Following Statements Does Not Describe a Tax

question 94

Multiple Choice

Which of the following statements does not describe a tax consequence to shareholders in a complete liquidation?

• A)All complete liquidations are taxable to the shareholders.
• B)Complete liquidations are taxable to all individual shareholders.
• C)Complete liquidations are taxable to all corporate shareholders owning stock of the liquidated corporation representing less than 80 percent or more of voting power and value.
• D)Complete liquidations are tax-deferred to corporate shareholders owning stock of the liquidated corporation representing 80 percent or more of voting power and value.

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Definitions:

Olfactory Lobe

Part of the brain responsible for processing smell; it receives olfactory information from the nose.

Hammer

A tool typically used to drive nails into, or pull them out of, some other object, generally involving a handle attached to a heavy head.

Anvil

a heavy iron block typically used in forging or metalworking as a surface upon which metal can be hammered and shaped.

Stirrup

A ring or frame, hanging down from the saddle of a horse, for a rider's foot.