Identify Which of the Following Statements Is False

question 80

Multiple Choice

Identify which of the following statements is false.

• A)Minority shareholders involved in a Sec. 332 subsidiary liquidation must recognize a gain or loss under the Sec. 331 general liquidation rules.
• B)The parent corporation takes a basis in property received when liquidating a subsidiary corporation in a Sec. 332 liquidation equal to its basis to the subsidiary corporation.
• C)Section 332 is applicable to both the parent corporation and the minority shareholders if they exist.
• D)Property received by a minority shareholder takes a basis equal to its fair market value.

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Definitions:

Gap Junctions

Specialized intercellular connections between a multitude of animal cell-types that directly connect the cytoplasms of two cells, allowing various molecules, ions, and electrical impulses to directly pass through a regulated gate between cells.

Cardiac Muscle Cell

Specialized muscle cells found only in the heart, featuring unique properties such as automaticity and the ability to contract as a unit.

Electrical Resistance

A measure of the degree to which an object opposes the passage of an electric current.

Ventricular Contraction

This refers to the phase in the cardiac cycle where the ventricles (lower chambers of the heart) contract to pump blood out to the body and lungs.