A Subsidiary Recognizes No Gain or Loss on a Distribution

question 9

True/False

A subsidiary recognizes no gain or loss on a distribution to a parent corporation owning the majority of the subsidiary's stock in a complete liquidation.

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Definitions:

China

A country in East Asia, the world's most populous nation, with a long history, rich culture, and significant global economic influence.

Overall

Encompassing everything or in general; a term not specific to economics but often used to imply a holistic or comprehensive perspective.

Substantially

To a great or significant extent, often used to signify the importance, size, or degree of something.

Positive Trade Balance

A situation where the value of a country's exports exceeds the value of its imports, also known as a trade surplus.