Identify Which of the Following Statements Is True

question 43

Multiple Choice

Identify which of the following statements is true.

• A)Ann, Dewey Corporation's sole shareholder, exchanges her Dewey stock having a $400,000 FMV and a $175,000 adjusted basis for $350,000 of Heider Corporation stock and $50,000 cash. Ann realizes a $225,000 gain on the stock transfer, none of which is recognized.
• B)A Type B reorganization can be accomplished without formal shareholder approval.
• C)The target corporation's tax attributes are lost in a Type B reorganization.
• D)All of the above are false.

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Definitions:

Reinforcement Schedule

A plan or strategy in behavioral psychology involving the timing and frequency of rewards that influence the rate and retention of learning.

Observes Behavior

The act of watching and noting the actions or reactions of individuals or groups in order to gather data about specific, often psychological, phenomena.

Variable Interval

In the context of schedules of reinforcement in behaviorism, refers to a reinforcement schedule where responses are rewarded after a variable amount of time has passed.

Praise

The act of expressing approval or commendation; an important tool in reinforcing positive behavior and achievements.