Property Received in a Corporate Liquidation by a Noncorporate Shareholder

question 61

Multiple Choice

Property received in a corporate liquidation by a noncorporate shareholder has

• A)a basis equal to its basis on the liquidating corporation's books increased by any gain recognized by the shareholder upon receipt of the property. Its holding period includes the holding period of the shareholder's stock.
• B)a basis equal to its basis on the liquidating corporation's books increased by any gain recognized by the shareholder upon receipt of the property. Its holding period commences on the day after the distribution date.
• C)a basis equal to its FMV reduced by any liabilities assumed by the shareholder. Its holding period commences on the day after the distribution date.
• D)a basis equal to its FMV. Its holding period commences on the day after the distribution date.

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Definitions:

Human Act

Actions performed by humans which are the result of deliberate decisions.

Affirmative Action

A policy designed to redress past discrimination against women and minority groups through measures to improve their economic and educational opportunities.

Qualified White

Refers to white individuals who meet certain criteria of skills, experience, or credentials deemed necessary for a specific role or opportunity.

Asian Applicants

Refers to individuals of Asian descent who are applying for positions, programs, or opportunities, often discussed in the context of admissions or employment discrimination.