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:

Trisomy 21

A genetic disorder caused by the presence of an extra 21st chromosome, also known as Down syndrome.

Trisomy 18

A genetic disorder caused by the presence of an extra 18th chromosome, leading to severe developmental and physical abnormalities.

Trisomy 13

Trisomy 13, also known as Patau syndrome, is a chromosomal condition associated with severe intellectual disability and physical abnormalities in many parts of the body.

Trisomy 12

A genetic disorder characterized by having three copies of chromosome 12 in cells, instead of the usual two, which can lead to various developmental and health issues.