Identify Which of the Following Statements Is True

question 14

Multiple Choice

Identify which of the following statements is true.

• A)The distributing corporation's E&P must be reduced by the FMV of nontaxable stock rights distributed to shareholders.
• B)A stock redemption can be used to withdraw some assets from a corporation prior to a sale of the business.
• C)A shareholder can redeem part of his stock and recognize a capital gain if the corporation has only one shareholder.
• D)All of the above are false.

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Definitions:

Office of Federal Contract Compliance Programs

A U.S. Department of Labor agency responsible for ensuring that employers doing business with the Federal government comply with the laws and regulations requiring non-discrimination and affirmative action.

Executive Orders

Directives issued by the President of the United States that manage operations of the federal government and have the force of law.

Equal Employment Opportunity Commission

A U.S. federal agency responsible for enforcing federal laws that make it illegal to discriminate against a job applicant or an employee.

Discrimination

Unfair treatment or prejudice against individuals or groups based on characteristics such as race, age, sex, or religion.