One Consequence of a Property Distribution by a Corporation to a Shareholder

question 87

Multiple Choice

One consequence of a property distribution by a corporation to a shareholder is that

• A)the amount of the distribution is increased by any liability assumed by the shareholder.
• B)the holding period of the distributed property includes the holding period of the distributing corporation.
• C)the shareholder's basis in the distributed property is the same as the distributing corporation's basis.
• D)any liabilities assumed by the shareholder do not reduce the shareholder's basis.