Which One of the Following Statements About Property Distributions Is

question 162

Multiple Choice

Which one of the following statements about property distributions is false?

• A)When the basis of distributed property is greater than its fair market value, a deficit may be created in E & P.
• B)When the basis of distributed property is less than its fair market value, the distributing corporation recognizes gain.
• C)When the basis of distributed property is greater than its fair market value, the distributing corporation does not recognize loss.
• D)The amount of a distribution received by a shareholder is measured by using the property's fair market value.
• E)All of the above statements are true.

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Definitions:

Nucleotides

The building blocks of DNA and RNA, consisting of a nitrogenous base, a sugar (ribose in RNA, deoxyribose in DNA), and one to three phosphate groups.

Pyrimidines

Nitrogenous bases, each composed of a single ring of carbon and nitrogen atoms (e.g., thymine, cytosine, and uracil); components of nucleic acids. Compare with purines.

Phosphate Groups

Phosphate groups are chemical groups consisting of a phosphorus atom bonded to four oxygen atoms (PO4), important in energy transfer within cells.

Ribose Groups

Components of RNA molecules consisting of five-carbon sugars connected to the nucleobases and phosphate groups.