Identify Which of the Following Statements Is False

question 84

Multiple Choice

Identify which of the following statements is false.

• A)A taxable acquisition of the assets of a target corporation that is subsequently liquidated, results in a loss of the target corporation's tax attributes.
• B)A taxable acquisition of the assets of a target corporation, that is subsequently liquidated, results in the target corporation's shareholders recognizing gain or loss on the surrender of their target stock.
• C)An acquiring corporation in a tax-free or a taxable acquisition transaction does not recognize gain or loss when its stock is issued in exchange for property.
• D)An acquiring corporation in a taxable acquisition transaction must acquire all of the assets and liabilities of the target corporation.

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Definitions:

Consuming

Consuming involves using up goods or services by purchasing, eating, or utilizing them to satisfy needs or wants.

Good

A material item or service that satisfies a need or desire and is available for purchase or trade.

Demand-Side

Economic policies or concepts focused on increasing demand for goods and services as a way to stimulate economic growth.

Market Failures

Situations where the allocation of goods and services by a free market is not efficient, often leading to a net social welfare loss.