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.

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Definitions:

Intrinsic Reward

Refers to the psychological satisfaction or personal fulfillment derived from achieving or completing a task, rather than from external rewards.

Work Ethic

The principle that hard work is intrinsically virtuous or worthy of reward.

Job Enrichment

A method of motivating employees by providing them with more variety, autonomy, and responsibility in their roles.

Task Identity

The degree to which a job requires completion of a whole and identifiable piece of work.