Identify Which of the Following Statements Is True

question 70

Multiple Choice

Identify which of the following statements is true.

• A)In general, a noncorporate shareholder that receives a distribution in complete liquidation of the liquidating corporation recognizes his or her entire realized gain as a capital gain.
• B)The basis for nonmoney property received by a noncorporate shareholder as part of a liquidating distribution is the same as its basis on the books of the liquidating corporation.
• C)The liquidating corporation does not recognize gains and losses when making a distribution of nonmoney property.
• D)All of the above are false.

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Definitions:

Caustic Substance

A chemical material capable of burning, corroding, or destroying living tissues.

Duty of Care

A legal obligation requiring individuals to exercise a reasonable level of care and caution to avoid harm to others.

Negligence

Failure to take reasonable care to avoid causing injury or loss to another person, resulting in legal liability.

Zoned "Commercial"

A designation given to an area by a local government, indicating that the land is intended for use by businesses to conduct retail, wholesale, service, or other types of commercial activities.