Identify Which of the Following Statements Is True

question 32

Multiple Choice

Identify which of the following statements is true.

• A)A liquidating distribution of property other than a disqualified property that is made ratably to all shareholders (based on their stockholdings)will permit the recognition of loss on the portion of the distribution that is made to a related person.
• B)A subsidiary corporation can recognize losses on distributions to either the parent corporation or minority shareholders in a Sec. 332 liquidation.
• C)Section 336 prevents recognition of a loss when making a pro rata distribution of property to a related person.
• D)All of the above are false.

---

Definitions:

Social Change

The alteration in the social order of a society, which may include changes in its nature, social institutions, social behaviors, or social relations.

Social Problems

Issues within a society that are viewed by a significant number of people or key social institutions as being undesirable or harmful.

Societal Patterns

The recurrent and pervasive ways in which society is organized and functions, including norms, behaviors, and institutions.

Eighteenth Century

The period from 1701 to 1800, characterized by significant developments in the arts, science, and politics, often referred to as part of the Enlightenment era.