Property Received in a Corporate Liquidation by a Noncorporate Shareholder

question 61

Multiple Choice

Property received in a corporate liquidation by a noncorporate shareholder has

• A)a basis equal to its basis on the liquidating corporation's books increased by any gain recognized by the shareholder upon receipt of the property. Its holding period includes the holding period of the shareholder's stock.
• B)a basis equal to its basis on the liquidating corporation's books increased by any gain recognized by the shareholder upon receipt of the property. Its holding period commences on the day after the distribution date.
• C)a basis equal to its FMV reduced by any liabilities assumed by the shareholder. Its holding period commences on the day after the distribution date.
• D)a basis equal to its FMV. Its holding period commences on the day after the distribution date.

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Definitions:

Attitudes

A psychological tendency expressed by evaluating a particular entity with some degree of favor or disfavor.

Human Mind

The set of cognitive faculties including consciousness, perception, thinking, judging, and memory, that is the essence of an individual's mind.

Society

A group of individuals involved in persistent social interaction, or a large social group sharing the same geographical or social territory, typically subject to the same political authority and dominant cultural expectations.

Dealing

The act of engaging in commercial transactions or negotiations.