A Subsidiary Corporation Is Liquidated at a Time When It

question 28

True/False

A subsidiary corporation is liquidated at a time when it is indebted to its parent corporation. The subsidiary corporation distributes property to the parent corporation in satisfaction of the indebtedness. If the liquidation is governed by §332, neither the subsidiary nor the parent recognize gain or loss on the transfer of property in satisfaction of indebtedness.

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Definitions:

Free Enterprise

An economic system where private businesses operate in competition and largely free of state control, emphasizing the importance of a market economy.

Defense Department

The part of the United States government responsible for implementing military policies and maintaining armed forces.

GI Bill Of Rights

The 1944 legislation that provided money for education and other benefits to military personnel returning from World War II.

War Veterans

Individuals who have served in the military forces, especially those who have directly participated in armed conflicts.