Identify Which of the Following Statements Is True

question 28

Multiple Choice

Identify which of the following statements is true.

• A)A parent corporation cannot liquidate a subsidiary corporation (having but a single class of stock)and avoid recognizing its realized gain unless the parent corporation owns at least 80% of the subsidiary's stock.
• B)The liquidation of a subsidiary corporation must be completed within one tax year to receive nonrecognition treatment.
• C)The provisions permitting a tax-free liquidation of a subsidiary corporation apply to both corporate and noncorporate shareholders of the subsidiary.
• D)All of the above are false.

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Definitions:

Cane Sugar

Refined sugar obtained from the sugarcane plant, often used as a sweetener in foods and beverages.

Lean Meat

Meat that has a relatively low content of fat, often recommended for a healthy diet.

Vegan Diet

A dietary choice that excludes all animal products and derivatives, focusing solely on plant-based foods.

Cream Of Broccoli

A thick, creamy soup made from pureed broccoli and often enriched with milk or cream.