Identify Which of the Following Statements Is True

question 28

Multiple Choice

Identify which of the following statements is true.

• A)A parent corporation cannot liquidate a subsidiary corporation (having but a single class of stock)and avoid recognizing its realized gain unless the parent corporation owns at least 80% of the subsidiary's stock.
• B)The liquidation of a subsidiary corporation must be completed within one tax year to receive nonrecognition treatment.
• C)The provisions permitting a tax-free liquidation of a subsidiary corporation apply to both corporate and noncorporate shareholders of the subsidiary.
• D)All of the above are false.

---

Definitions:

Therapeutic Efficacy

The ability of a treatment or drug to provide the intended beneficial effects on the health condition for which it is used.

DSM-5

The Diagnostic and Statistical Manual of Mental Disorders, Fifth Edition, a handbook used by healthcare professionals as the authoritative guide to diagnose mental disorders.

Cultural Differences

Variations in the customs, values, traditions, and social behaviors of different societies or communities.

Spirit Possession

The belief or experience that an individual is inhabited or taken over by a spirit, which can influence their behavior or health.