Identify Which of the Following Statements Is False

question 82

Multiple Choice

Identify which of the following statements is false.

• A)The rules for the recognition of a gain or loss by a corporation that distributes property in redemption of its stock are the same as the rules for property distributions that are not in redemption of stock.
• B)Generally, little or no gain is recognized by the redeeming shareholder in a qualified Sec. 303 redemption.
• C)When a stock redemption is considered a sale of stock by the shareholder, the E&P of the redeeming corporation is reduced by the FMV of the property used to redeem the stock.
• D)Under Sec. 311, a corporation does not recognize a loss when it distributes property that has declined in value.

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Definitions:

Inhibitory

Refers to a process that restrains or suppresses the activity of a biological function or neural pathway.

Excitatory

Relating to or causing excitation, often in the context of neurotransmitters that stimulate nerve cells to initiate or increase activity.

Somatic Nervous System

The division of the peripheral nervous system that connects the central nervous system with sensory receptors, skeletal muscles, and the surface of the body.

Autonomic Nervous System

The part of the nervous system that controls involuntary actions of the body, including heart rate, digestion, and respiratory rate.