When an S Corporation Shareholder Sells Her Stock,she Must First

question 128

True/False

When an S corporation shareholder sells her stock,she must first recognize ordinary gain to the extent of her share of the unrealized receivables and appreciation on inventory held by the S corporation,with the balance of the gain treated as capital gain.

---

Definitions:

Esteem Needs

In Maslow's hierarchy of needs, the fourth level, involving the human desire for respect, self-esteem, and recognition from others.

Maslow's Hierarchy

A theory in psychology proposed by Abraham Maslow, consisting of a five-tier model of human needs, depicted as hierarchical levels within a pyramid.

Self-actualization Needs

The highest level in Maslow's hierarchy of needs, representing the fulfillment of one's potential and the realization of one's abilities and qualities.

Aesthetic Needs

The psychological desires for beauty, balance, and form.