Identify Which of the Following Statements Is True

question 90

Multiple Choice

Identify which of the following statements is true.

• A)The loss realized on the sale of a property is disallowed when such property was received by a corporation as a contribution of capital in a transaction having as its principal purpose the recognition of loss pursuant to the corporation's subsequent liquidation later in the same taxable year.
• B)Losses claimed in a tax return filed before the adoption of the plan of liquidation are not restricted by Sec. 336(d)(2).
• C)Properties acquired by a liquidating corporation as a capital contribution occurring within three years of the adoption of a plan of liquidation are generally presumed to have a tax avoidance motive.
• D)All of the above are false.

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Definitions:

Fundamental Attribution Error

The tendency to overestimate the influence of personality and underestimate the influence of situational factors when evaluating others' behaviors.

Good Behavior

Actions or conduct that are considered polite, respectful, and appropriate in a given social context.

Bad Behavior

Actions or conduct that are inappropriate, disruptive, or violate societal or specific set rules or norms.

Fundamental Attribution Error

The tendency to overestimate the effect of personality or disposition and underestimate the effect of situational factors when explaining others' behavior.