Identify Which of the Following Statements Is True

question 81

Multiple Choice

Identify which of the following statements is true.

• A)The target corporation in a tax-free reorganization generally recognizes no gain or loss when boot property is received in exchange for assets because such property is usually distributed to its shareholders and creditors when the target corporation is liquidated.
• B)In tax-free reorganizations, one transaction cannot qualify for more than one type of tax-free reorganization.
• C)The Sec. 1245 recapture rules override the nonrecognition of gain or loss rules for an asset-for-stock tax-free reorganization.
• D)All of the above are false.

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Definitions:

Void

A term describing a contract or agreement that has no legal force or effect and is unenforceable.

Digital Records

Digital Records refer to information or data that is created, stored, and managed in electronic format, often used for documentation and archival purposes.

Electronic Signatures

Digital forms of signatures that electronically signify an agreement to terms of a document or set of documents.

Contracts Entered

Agreements that have been formally established or agreed upon by the parties involved.