Parent Corporation Owns All of Subsidiary Corporation's Stock

question 65

Multiple Choice

Parent Corporation owns all of Subsidiary Corporation's stock. In addition, Parent Corporation owns $100,000 (face amount and basis) of Subsidiary Corporation's bonds. When Subsidiary Corporation is completely liquidated, it distributes property with a $70,000 adjusted basis and a $100,000 FMV to Parent Corporation in redemption of the Subsidiary Corporation bonds. Following the liquidation, Parent Corporation will have a basis in the Subsidiary Corporation property received for the bonds of

• A)$0.
• B)$70,000.
• C)$100,000.
• D)none of the above

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Definitions:

Motivational Significance

The importance or value of a goal or object in driving an individual's motivation to pursue or avoid it.

Unconditional Positive Regard

An attitude of acceptance and respect on the part of an observer, no matter what a person says or does, especially used in client-centered therapy.

Social-Cognitive Theories

A framework for understanding behavior that emphasizes the role of cognitive processes and social influences.

Academic Success

Achievement of desired learning outcomes or the attainment of higher levels of education, often measured by grades, test scores, or degree completion.