Identify Which of the Following Statements Is False

question 80

Multiple Choice

Identify which of the following statements is false.

• A)Minority shareholders involved in a Sec. 332 subsidiary liquidation must recognize a gain or loss under the Sec. 331 general liquidation rules.
• B)The parent corporation takes a basis in property received when liquidating a subsidiary corporation in a Sec. 332 liquidation equal to its basis to the subsidiary corporation.
• C)Section 332 is applicable to both the parent corporation and the minority shareholders if they exist.
• D)Property received by a minority shareholder takes a basis equal to its fair market value.

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Definitions:

Production

The process of creating, manufacturing, or producing goods and services.

Routine Inquiry

A standard or regularly occurring request for information or clarification.

Cost Estimates

An evaluation or approximation of the likely expenses involved in the execution of a project or production of a good.

Goodwill

The positive reputation and relationship a business maintains with its customers, employees, and community, often considered an intangible asset.