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:

Multinational Corporation

A company that operates in multiple countries, managing production or delivering services in more than one country.

Centralized

A structure or system where decision-making authority is concentrated at a single point or in a single organizational entity.

Shareholder Value Model

A corporate governance approach that prioritizes maximizing the value for shareholders through strategies, policies, and business decisions.

Corporate Accountability

The concept that companies should be responsible for their actions in society, including their social, environmental, and economic impacts.