Identify Which of the Following Statements Is True

question 50

Multiple Choice

Identify which of the following statements is true.

• A)The transferee corporation's acquisition or assumption of liabilities in excess of the total adjusted bases of the properties transferred by a transferor results in a gain recognition by the transferor.
• B)When a transferor exchanges a mortgaged property under Sec. 351 and the amount of the mortgage is greater than the transferor's basis in the property, the transferor's basis in the stock received will be equal to the basis the transferor had in the mortgaged property.
• C)When forming a corporation, the accounts payable of a transferor's business are not liabilities for gain computation purposes if the transferor's business uses the accrual method of accounting.
• D)All of the above are false.

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Definitions:

Involved Nerve

Refers to a nerve that is affected by or is contributing to a specific medical condition or injury.

Lumbar Puncture

The insertion of a needle between the vertebrae in the lumbar area for the purpose of withdrawing spinal fluid.

Meningitis

An inflammation of the meninges, the protective membranes covering the brain and spinal cord, often caused by infection.

Subarachnoid Space

The interval between the arachnoid membrane and the pia mater covering the brain and spinal cord, filled with cerebrospinal fluid.