Identify Which of the Following Statements Is False

question 59

Multiple Choice

Identify which of the following statements is false.

• A)Liquidating distributions made to minority shareholders in the tax-free liquidation of a controlled subsidiary corporation are treated by the liquidating corporation in the same way as nonliquidating distributions.
• B)Sec. 337(a)provides that the liquidating corporation recognizes no gain or loss on the distribution of property to the 80% distributee in a complete Sec. 332 liquidation.
• C)The depreciation recapture provisions in Secs. 1245 and 1250 override the Sec. 337(a)nonrecognition rule if a controlled subsidiary corporation is liquidated into its parent corporation.
• D)A corporation that distributes the stock of a subsidiary may elect to treat the distribution as a sale of the subsidiary's assets.

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Definitions:

Advantages

Benefits or favorable factors that contribute to the success or effectiveness of something.

Resolution

A formal decision agreed upon by a group or body, often through voting, reflecting an action, direction, or intention.

Civil Lawsuit

A legal action taken by one individual or entity against another in a civil court to seek redress or compensation for a wrong or injury.

Brake Failure

A mechanical defect that results in a vehicle's braking system not operating as intended, potentially leading to accidents.