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:

Farming

The practice of cultivating plants and livestock to produce food, fiber, medicinal plants, and other products to sustain and enhance human life.

Diseases

Illnesses or medical conditions that impact the body or mind.

Diffusion

The spread of cultural items such as ideas, styles, religions, technologies, languages among people.

Languages

Systems of communication used by particular communities, involving the use of spoken, written, or signed words in a structured and conventional way.