Identify Which of the Following Statements Is False

question 37

Multiple Choice

Identify which of the following statements is false.

• A)A corporation must file an information return with the Internal Revenue Service within thirty days of adopting a resolution to liquidate.
• B)The adoption of a formal plan of liquidation can provide additional benefits under tax laws to the corporation and its shareholders.
• C)A plan of liquidation must be produced in writing in order to be accepted by the Internal Revenue Service.
• D)The adoption of a plan of liquidation permits a parent corporation a three-year time period to carry out the complete liquidation of its subsidiary.

---

Definitions:

Explicit

Clearly stated, defined, or detailed, leaving no room for confusion or interpretation.

Tacit

Knowledge or understanding that is implied or understood without being stated openly, often acquired through experience rather than formal instruction.

Verbal

Pertaining to words and the use of words in communication, both spoken and written.

Creative Ability

Creative ability refers to the capacity to generate innovative ideas, solutions, or artistic expressions, which are novel and valuable.