Identify Which of the Following Statements Is True

question 70

Multiple Choice

Identify which of the following statements is true.

• A)In general, a noncorporate shareholder that receives a distribution in complete liquidation of the liquidating corporation recognizes his or her entire realized gain as a capital gain.
• B)The basis for nonmoney property received by a noncorporate shareholder as part of a liquidating distribution is the same as its basis on the books of the liquidating corporation.
• C)The liquidating corporation does not recognize gains and losses when making a distribution of nonmoney property.
• D)All of the above are false.

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Definitions:

Writs of Assistance

Legal documents that served as general search warrants enabling colonial British officials to search any premises for smuggled goods without specifying the place or items being sought, leading to tensions that contributed to the American Revolution.

Search Warrants

Legal documents issued by a court or judicial officer that authorize law enforcement officials to conduct searches of premises for evidence.

Sugar Act

A law enacted by the British Parliament in 1764 aiming to raise revenue from the American colonies by imposing a tax on sugar and molasses imported into the colonies.

Stamp Act

A 1765 British law imposing a tax on all paper documents in the American colonies, leading to widespread protest and contributing to the American Revolution.