Property Distributed by a Corporation as a Dividend Is Subject

question 183

True/False

Property distributed by a corporation as a dividend is subject to a liability in excess of its basis. For purposes of determining gain on the distribution, the basis of the property is treated as being not less than the amount of liability.

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Definitions:

Area

A quantification of the size of a 2D shape or surface, represented in units squared.

Standard Normal Curve

The standard normal curve is a type of normal curve with a mean of 0 and a standard deviation of 1, used as a reference in probability and statistics.

Probability

A measure of the likelihood that an event will occur, expressed as a number between 0 and 1 where 0 indicates impossibility and 1 indicates certainty.

Z

A statistical measure used in the context of standard deviations to describe the position of a raw score in relation to the mean of a group of scores.