Which of the Following Statements Does Not Describe a Tax

question 94

Multiple Choice

Which of the following statements does not describe a tax consequence to shareholders in a complete liquidation?

• A)All complete liquidations are taxable to the shareholders.
• B)Complete liquidations are taxable to all individual shareholders.
• C)Complete liquidations are taxable to all corporate shareholders owning stock of the liquidated corporation representing less than 80 percent or more of voting power and value.
• D)Complete liquidations are tax-deferred to corporate shareholders owning stock of the liquidated corporation representing 80 percent or more of voting power and value.

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Definitions:

Balanced Chemical Equation

An equation that represents a chemical reaction with equal numbers of atoms for each element in both reactants and products.

Reduction

A chemical process involving the gain of electrons or the decrease in oxidation state by a molecule, atom, or ion.

Oxidation Number

A measure of the degree of oxidation of an atom in a substance, indicating the number of electrons lost or gained by an atom.

Oxidation Number

An indicator of how much an atom in a substance has been oxidized, shown by the quantity of electrons it has either gained or lost.