Identify Which of the Following Statements Is True

question 60

Multiple Choice

Identify which of the following statements is true.

• A)The Sec. 332 nonrecognition rules apply to the parent corporation when a subsidiary corporation transfers property to the parent corporation in payment of the subsidiary's debt obligation.
• B)A subsidiary corporation is prevented from recognizing gain or loss when transferring property to its parent corporation in satisfaction of an indebtedness it owes to the parent corporation as part of its complete liquidation.
• C)Nonrecognition of gain or loss rules apply to a subsidiary corporation when, pursuant to its complete liquidation, the subsidiary transfers property to a third-party creditor.
• D)All of the above are false.

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Definitions:

Highest Percentage

Refers to the highest ratio or fraction, often expressed as a percentage, within a set of figures or statistical data.

Government Programs

Initiatives and services provided by the government aimed at achieving specific socio-economic goals.

Economic Efficiency

A situation where resources are allocated in the most effective way possible, maximizing the potential for meeting needs and wants.

Poverty

A condition characterized by severe deprivation of basic human needs, including food, safe drinking water, sanitation facilities, health, shelter, education, and information.