Identify Which of the Following Statements Is True

question 80

Multiple Choice

Identify which of the following statements is true.

• A)Able Corporation (New York)transfers its assets to Able Corporation (Delaware)in exchange for all of its stock. Able Corporation (New York)is liquidated. This exchange is a Type F reorganization.
• B)Strict adherence to legislative guidelines with regard to reorganizations is sufficient for tax-free treatment.
• C)A suitable business purpose for a tax-free reorganization is to permit the minimization of shareholder taxes.
• D)All of the above are false.

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Definitions:

Metacarpal

Bones within the hand that extend from the wrist to the base of the fingers.

Femur

The longest and strongest bone in the human body, extending from the hip to the knee.

Sternum

is the long flat bone located in the center of the chest, connecting the rib bones and serving as a support for the upper body.

Vertebra

One of the individual bones that stack to form the vertebral column (spine), providing structural support and housing spinal cord pathways.