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:

Council on Environmental Quality

A federal agency within the Executive Office of the President that advises on environmental policies and strategies.

Transporter

An entity or individual involved in the movement of goods or people from one location to another.

Comprehensive Environmental Response, Compensation, and Liability Act

A U.S. federal law, enacted in 1980, designed to clean up sites contaminated with hazardous substances.

Potentially Responsible Parties

Individuals or entities that may be liable for contamination at a hazardous waste site under environmental laws.