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.

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Definitions:

Lifeworld

The world of living experience and subjective interpretations, as distinguished from objective realms of science and social structures.

Ontological Depth

Refers to the complexity and richness of being or existence, often discussed in philosophical contexts regarding the nature of reality.

Structuration Theory

A social theory that posits that individuals and society shape each other through a dynamic and reciprocal process of actions and structures.

Substantive Rationality

A type of rationality that considers the values, ethics, and social implications of actions rather than merely focusing on the most efficient means to an end.