Identify Which of the Following Statements Is True

question 61

Multiple Choice

Identify which of the following statements is true.

• A)Depreciation recapture rules do not override the nonrecognition of gain or loss rules.
• B)The acquisition of liabilities by an acquiring corporation will trigger a gain.
• C)A target corporation will recognize a gain when it distributes stock to its shareholders.
• D)The basis of property acquired in a reorganization is its FMV.

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Definitions:

ABS Circuits

Electrical circuits within an Anti-lock Braking System designed to monitor and control wheel speed and braking force.

Solenoids Actuating

Solenoids actuating refers to solenoids being triggered or operated, which then actuate or move other mechanical components through electromagnetic force.

Self-Test

A diagnostic procedure or check that a system performs on itself to ensure it is operating correctly.

Modulator Valves

Valves that modulate the pressure of fluids in systems such as automatic transmissions and ABS braking systems, for controlled operation.