Identify Which of the Following Statements Is True

question 82

Multiple Choice

Identify which of the following statements is true.

• A)The transferor must recapture depreciation when exchanging Sec. 1245 property in all transactions coming under Sec. 351.
• B)A corporation receiving property in a Sec. 351 exchange can select any MACRS depreciation method for the asset.
• C)When depreciable property is transferred to a corporation in a Sec. 351 exchange in which no gain is recognized, the corporation must continue to use the transferor's depreciation method and recovery period for the property.
• D)All of the above are false.

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Definitions:

Shareholders

Individuals or entities that own one or more shares of stock in a public or private corporation, giving them a right to a portion of the company's profits and assets.

Limited Liability

A legal structure that restricts the amount of money that owners or shareholders can lose in case the company fails, limiting their loss to the amount they have invested in the company.

Direct Management

The process of overseeing and directly controlling operations or tasks without intermediary levels of command.

Charter

A legal document that establishes a corporation or other organization, outlining its purpose, activities, and rights.