Identify Which of the Following Statements Is True

question 99

Multiple Choice

Identify which of the following statements is true.

• A)In a tax-free reorganization, the acquiring corporation's holding period for the acquired properties includes the period of time the target corporation held the properties.
• B)In a tax-free reorganization, if the acquiring corporation uses nonmonetary boot property, gains or losses will be recognized by the acquiring corporation.
• C)The receipt of cash by a shareholder results in the recognition of all of his or her realized gain even if the transaction qualifies as a tax-free reorganization.
• D)All of the above are false.

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Definitions:

Algebraic Expression

An algebraic expression is a mathematical phrase that can include numbers, variables, and operation symbols, but not an equality sign.

Consecutive Integers

Integers that follow each other in order without any gaps.

Simplified Expression

An expression that has been condensed to its simplest form, where all like terms have been combined and all operations have been performed.

Algebraic Expression

An algebraic expression is a mathematical phrase that can contain ordinary numbers, variables (like x or y), and operations (like add, subtract, multiply, and divide).