When a Subsidiary Sells to the Parent Some Business-Use Property

question 126

True/False

When a subsidiary sells to the parent some business-use property that has appreciated from its $20,000 basis to a $50,000 fair market value,the subsidiary immediately recognizes $30,000 ordinary income.

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Definitions:

Too-Big-To-Fail

A concept suggesting that certain corporations or institutions are so large and interconnected that their failure would be disastrous to the broader economy, often leading to government intervention.

Bank Panics

Occur when a large number of customers withdraw their deposits simultaneously, fearing the bank's insolvency.

Continental Illinois

A notable example of a major bank failure, occurred in the 1980s, which led to significant reforms in banking regulations.

Overdraft Privileges

A banking service that allows a customer to withdraw more money than they have in their account, usually for a fee.