Identify Which of the Following Statements Is True

question 60

Multiple Choice

Identify which of the following statements is true.

• A)The Sec. 332 nonrecognition rules apply to the parent corporation when a subsidiary corporation transfers property to the parent corporation in payment of the subsidiary's debt obligation.
• B)A subsidiary corporation is prevented from recognizing gain or loss when transferring property to its parent corporation in satisfaction of an indebtedness it owes to the parent corporation as part of its complete liquidation.
• C)Nonrecognition of gain or loss rules apply to a subsidiary corporation when, pursuant to its complete liquidation, the subsidiary transfers property to a third-party creditor.
• D)All of the above are false.

---

Definitions:

Visual-spatial Ability

The capacity to perceive, analyze, and understand visual information in the environment and to visualize and manipulate objects in space.

Personal Fable

The belief that our feelings and ideas are special and unique and that we are invulnerable; one aspect of adolescent egocentrism.

Reading Problems

Difficulties in recognizing written words, understanding them, and reading effectively.

Menarche

The onset of menstruation.