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.

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Definitions:

Finance Lease

A type of lease arrangement where the lessee assumes both the financial risks and rewards of asset ownership, typically involving long-term and non-cancellable terms.

Consumer Lease

A contract in which a lessee (user) pays to use goods (like a vehicle) for a fixed period without obtaining ownership.

Common Law

A legal system based on court decisions and precedents rather than statutes.

Sales Contract

A legal agreement between a buyer and seller detailing the terms of sale for goods or services.