Identify Which of the Following Statements Is False

question 87

Multiple Choice

Identify which of the following statements is false.

• A)When determining the use of an NOL carryover following a change of ownership, the old loss corporation and the new loss corporation may be the same for Sec. 382 purposes.
• B)A new loss corporation that does not continue the business enterprise of the old loss corporation during the two-year period beginning on the date of the stock ownership change cannot use the net operating loss carryover.
• C)One advantage of a tax-free reorganization is that losses realized as part of a tax-free reorganization are not recognized.
• D)For purposes of Sec. 382, ownership changes are tested any time a 5% shareholder has a stock transaction affecting his ownership.

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Definitions:

Hydrophilic

Having an affinity for water; capable of interacting with or dissolving in water.

PKa

A measure of acidity that indicates the strength of an acid by showing the equilibrium constant for the dissociation of acid into protons and its conjugate base.

Central Limit Theorem

A statistical theory that states that the sampling distribution of the mean of any independent, random variable will be normal or nearly normal, if the sample size is large enough.

Normal Distribution

A bell-shaped frequency distribution that is symmetric about the mean, showing that data near the mean are more frequent in occurrence than data far from the mean.