Identify Which of the Following Statements Is True

question 81

Multiple Choice

Identify which of the following statements is true.

• A)The target corporation in a tax-free reorganization generally recognizes no gain or loss when boot property is received in exchange for assets because such property is usually distributed to its shareholders and creditors when the target corporation is liquidated.
• B)In tax-free reorganizations, one transaction cannot qualify for more than one type of tax-free reorganization.
• C)The Sec. 1245 recapture rules override the nonrecognition of gain or loss rules for an asset-for-stock tax-free reorganization.
• D)All of the above are false.

---

Definitions:

Phi Effect

A phenomenon of visual perception in which the illusion of movement is created when stationary objects are viewed in succession rather than simultaneously.

Visual Cortex

The region of the cerebral cortex responsible for receiving and interpreting sensory signals from the eyes.

fMRI

Functional Magnetic Resonance Imaging, a neuroimaging procedure that measures brain activity by detecting changes associated with blood flow.

Flashing Pattern

A visual signal sequence where light is turned on and off in a particular rhythm or sequence, often used in warning signals or communication devices.