Identify Which of the Following Statements Is False

question 87

Multiple Choice

Identify which of the following statements is false.

• A)When determining the use of an NOL carryover following a change of ownership, the old loss corporation and the new loss corporation may be the same for Sec. 382 purposes.
• B)A new loss corporation that does not continue the business enterprise of the old loss corporation during the two-year period beginning on the date of the stock ownership change cannot use the net operating loss carryover.
• C)One advantage of a tax-free reorganization is that losses realized as part of a tax-free reorganization are not recognized.
• D)For purposes of Sec. 382, ownership changes are tested any time a 5% shareholder has a stock transaction affecting his ownership.

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Definitions:

Glandular Epithelial Tissue

Specialized epithelial tissue that forms the secreting surface of glands, including both endocrine and exocrine glands.

Nervous Tissue

Type of tissue that is specialized to transmit electrical signals throughout the body, composing the brain, spinal cord, and nerves.

Endocrine Glands

Glands that secrete hormones directly into the bloodstream to regulate various bodily functions.

TSH

Thyroid Stimulating Hormone, a pituitary hormone that regulates the production of hormones by the thyroid gland.