Identify Which of the Following Statements Is True

question 32

Multiple Choice

Identify which of the following statements is true.

• A)A liquidating distribution of property other than a disqualified property that is made ratably to all shareholders (based on their stockholdings)will permit the recognition of loss on the portion of the distribution that is made to a related person.
• B)A subsidiary corporation can recognize losses on distributions to either the parent corporation or minority shareholders in a Sec. 332 liquidation.
• C)Section 336 prevents recognition of a loss when making a pro rata distribution of property to a related person.
• D)All of the above are false.

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Definitions:

Mandated Reporters

Individuals required by law to report any suspected cases of abuse or neglect to proper authorities.

Child Abuse

Any action by another individual – adult or child – that causes significant harm to a child, including physical, emotional, sexual abuse, or neglect.

Legally Obligated

Being required by law to perform or refrain from performing a certain action.

Protective Factors

Attributes or conditions in individuals, families, communities, or the larger society that mitigate or eliminate risk and help people deal with stressful events effectively.