Identify Which of the Following Statements Is True

question 81

Multiple Choice

Identify which of the following statements is true.

• A)The target corporation in a tax-free reorganization generally recognizes no gain or loss when boot property is received in exchange for assets because such property is usually distributed to its shareholders and creditors when the target corporation is liquidated.
• B)In tax-free reorganizations, one transaction cannot qualify for more than one type of tax-free reorganization.
• C)The Sec. 1245 recapture rules override the nonrecognition of gain or loss rules for an asset-for-stock tax-free reorganization.
• D)All of the above are false.

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Definitions:

Intoxicated

Being intoxicated refers to a state of impairment due to the consumption of alcohol or drugs, affecting a person's mental faculties and physical coordination.

Unable

Lacking the skill, means, or opportunity to do something.

Reasonable Manner

Acting in a way that is considered sensible and appropriate under the circumstances by a standard of a reasonable person.

Necessary

Refers to something that is essential or required in a particular situation or for a particular process.