Identify Which of the Following Statements Is True

question 50

Multiple Choice

Identify which of the following statements is true.

• A)The transferee corporation's acquisition or assumption of liabilities in excess of the total adjusted bases of the properties transferred by a transferor results in a gain recognition by the transferor.
• B)When a transferor exchanges a mortgaged property under Sec. 351 and the amount of the mortgage is greater than the transferor's basis in the property, the transferor's basis in the stock received will be equal to the basis the transferor had in the mortgaged property.
• C)When forming a corporation, the accounts payable of a transferor's business are not liabilities for gain computation purposes if the transferor's business uses the accrual method of accounting.
• D)All of the above are false.

---

Definitions:

Media Conglomerates

Large corporations that own a variety of media companies across different types of media outlets, such as television, radio, publishing, and online platforms.

Viacom

A multinational media conglomerate known for its various television networks and film companies, playing a significant role in global entertainment.

News Corporation

A global, diversified media and information services company focused on creating and distributing authoritative and engaging content to consumers.

Concentrated Ownership

Refers to situations where a large fraction of shares or equity in a company or industry is owned by a small number of shareholders, leading to a high level of control.