Which of the Following Is Not a Possible Outcome for a Shareholder

question 115

Multiple Choice

Which of the following is not a possible outcome for a shareholder who is a party to a corporate reorganization falling under § 368?

• A)If boot is received, dividend treatment to the extent of the shareholder's proportionate share of corporate E & P.
• B)If boot is received, amounts in excess of a shareholder's proportionate share of corporate E & P are capital gains.
• C)Redemption treatment and therefore capital gain or loss if the requirements of § 302(b) are met.
• D)No gain or loss is recognized when the shareholder does not receive boot in the transaction.
• E)All of the above are possible outcomes.

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