Identify Which of the Following Statements Is True

question 70

Multiple Choice

Identify which of the following statements is true.

• A)The definition of stock under Sec. 351 includes stock rights and warrants.
• B)The receipt of property other than stock by the transferor will trigger the recognition of gain or loss under Sec. 351.
• C)The character of the gain recognized by the transferor when boot is received in a Sec. 351 transaction depends on the type of boot received.
• D)All of the above are false.

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Definitions:

Fee Simple Absolute

The most complete form of ownership of real property, which includes the total bundle of rights without duration limit and with the freedom to use or dispose of the property as the owner sees fit.

Land Ownership

The legal right to possess, use, and control a designated area of land.

Life Estate

A property interest that gives a person the right to possess and use property for a time that is measured by his lifetime or that of another person.

Statute of Frauds

A legal principle that requires certain types of contracts to be in writing and signed by all parties involved, in order to be enforceable.