Identify Which of the Following Statements Is False

question 80

Multiple Choice

Identify which of the following statements is false.

• A)Minority shareholders involved in a Sec. 332 subsidiary liquidation must recognize a gain or loss under the Sec. 331 general liquidation rules.
• B)The parent corporation takes a basis in property received when liquidating a subsidiary corporation in a Sec. 332 liquidation equal to its basis to the subsidiary corporation.
• C)Section 332 is applicable to both the parent corporation and the minority shareholders if they exist.
• D)Property received by a minority shareholder takes a basis equal to its fair market value.

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Definitions:

Medicare Spending

Government expenditures on Medicare, a federal program providing health coverage to people over 65 and some younger individuals with disabilities.

Homeless

Lacking a permanent place of residence.

Cat Food

A type of food specifically formulated and intended for consumption by cats to meet their nutritional needs.

Appeal to Force

This is a logical fallacy where someone tries to convince others of their point by threatening them, rather than through reason or evidence.