Identify Which of the Following Statements Is True

question 31

Multiple Choice

Identify which of the following statements is true.

• A)The method of accounting used by shareholders involved in a complete liquidation is relevant when determining the year in which the shareholder's gain or loss should be reported.
• B)An accrual method of accounting taxpayer recognizes his/her realized gain on a corporate liquidation when there has been actual or constructive receipt of the liquidating distribution(s).
• C)If a shareholder assumes or acquires liabilities of the liquidating corporation, the amount of these liabilities does not reduce the amount realized by the shareholder.
• D)All of the above are false.

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Definitions:

Strong

Having high physical power, durability, or intensity; often used to describe materials or individuals.

Tired

The state of feeling a need for rest or sleep due to exhaustion.

Linear Association

A relationship between two variables that can be represented by a straight line when plotted on a graph.

Negative Association

A correlation between two variables in which one variable decreases as the other increases, indicating an inverse relationship.