Identify Which of the Following Statements Is False

question 54

Multiple Choice

Identify which of the following statements is false.

• A)An individual taxpayer, who is assessed an additional payment of money based on stock ownership in a corporation whose stock is redeemed in a complete liquidation, may recognize a capital loss to the extent of the additional assessment.
• B)The open transaction doctrine defers the shareholder's gain or loss from a liquidation until the assets can be valued by sale or collection.
• C)The open transaction doctrine as applied to complete corporate liquidations refers to the numerous planning alternatives available when liquidating a corporation.
• D)The IRS asserts that the open transaction doctrine should be used only in extraordinary circumstances.

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Definitions:

Social Circles

The groups of people with whom an individual regularly interacts and shares a sense of community.

Socioemotional Selectivity Theory

Theory, proposed by Carstensen, that people select social contacts on the basis of the changing relative importance of social interaction as a source of information, as an aid in developing and maintaining a self-concept, and as a source of emotional well-being.

Psychological Function

A generic term for processes related to the mind, such as thinking, perceiving, feeling, and behaving, that enable individuals to navigate and interpret the world.

Gerontologist

A professional who specializes in the study of aging and the physical, mental, and social aspects associated with it.