Identify Which of the Following Statements Is False

question 37

Multiple Choice

Identify which of the following statements is false.

• A)A corporation must file an information return with the Internal Revenue Service within thirty days of adopting a resolution to liquidate.
• B)The adoption of a formal plan of liquidation can provide additional benefits under tax laws to the corporation and its shareholders.
• C)A plan of liquidation must be produced in writing in order to be accepted by the Internal Revenue Service.
• D)The adoption of a plan of liquidation permits a parent corporation a three-year time period to carry out the complete liquidation of its subsidiary.

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Definitions:

Tenants-In-Common

A form of co-ownership where each tenant (or owner) has an undivided interest in the property, and may have differing share sizes.

Ownership

The legal right to possess, use, control, and dispose of property, assets, or intellectual property.

Restrictive Covenants

Agreements included in contracts that restrict or limit actions of the parties, often related to employment, land use, or business operations.

Estates In Land

Various forms of ownership or rights in real property, including fee simple, life estate, and leasehold.