Identify Which of the Following Statements Is False

question 83

Multiple Choice

Identify which of the following statements is false.

• A)The acquiring corporation does not recognize gains or losses under Sec. 1001 when it transfers noncash boot property to the target corporation or its shareholders.
• B)Gain recognized by a shareholder in a tax-free reorganization may be characterized as a dividend.
• C)If no gain or loss is recognized by a stock or security holder in a tax-free reorganization, the stock or securities received take a substituted basis equal to the basis of the shares or securities surrendered.
• D)Tax-free reorganizations generally do not involve actual redemptions of the stock of the target corporation's shareholders.

---

Definitions:

Tithe

A tax or levy, traditionally one tenth of a person's income, paid to support the church or clergy.

Duke of Guise

A title in the French nobility, historically significant for its holders' roles in the Wars of Religion and the Catholic League in France.

Henry of Navarre

King Henry IV of France, known for his role in ending the French Wars of Religion through the Edict of Nantes.

Henry III

King of England from 1216 until his death in 1272, known for his long reign, conflicts with nobility, and role in the development of parliament.