Identify Which of the Following Statements Is True

question 101

Multiple Choice

Identify which of the following statements is true.

• A)A loss recognized by a shareholder upon complete liquidation of a corporation may not qualify for ordinary loss treatment if the stock is Sec. 1244 stock.
• B)The loss that is recognized by an individual shareholder on the liquidation of a corporation is a capital loss, up to certain limits, if the stock is Sec. 1244 stock.
• C)The loss recognized by a corporate shareholder on the worthlessness of the controlled subsidiary's stock is an ordinary loss.
• D)All of the above are false.

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Definitions:

Observational Learning

A learning process in which a person observes and models another's behavior, attitudes, or emotional expressions.

Conscious Thoughts

Mental processes of which an individual is aware, involving reasoning, perception, and active cognition.

Observational Learning

A form of social learning that occurs through watching the behaviors of others and then imitating, or modeling, those behaviors.

Relatively Permanent

Describes a condition or effect that is long-lasting or enduring, though not necessarily unchangeable.