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:

Bobo Doll Experiments

A series of psychological experiments that demonstrated how children can learn aggressive behaviors through observation.

Experimental Group

In an experiment, the group that is exposed to the experimental treatment.

Control Group

In an experiment, the group that does not receive the experimental treatment.

Social Learning Theory

A theory that emphasizes the importance of observing, modelling, and imitating the behaviors, attitudes, and emotional reactions of others.