In a Taxable Distribution of Stock, the Recipient Shareholder Takes

question 84

True/False

In a taxable distribution of stock, the recipient shareholder takes a basis equal to the FMV of the stock received.

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Definitions:

Cerebrovascular Accident

A stroke; caused by a hemorrhage in the brain or more often by a clot lodged in a cerebral artery.

Petty Cash Fund

A small amount of cash kept on hand to pay for minor expenses, such as office supplies or reimbursements.

Journal Entries

Documentation of financial transactions in a journal, showing the accounts and amounts debited and credited.

Vouchers

Documents serving as evidence for transactions, such as payments or receipts, and authorize the related accounting entries.