Which of the Following Statements Is True Concerning All Types

question 49

Multiple Choice

Which of the following statements is true concerning all types of tax-free corporate reorganizations?

• A)Assets are transferred from one corporation to another.
• B)Stock is exchanged with shareholders.
• C)Liabilities that are assumed when cash is also used as consideration will be treated as boot.
• D)Corporations and shareholders involved in the reorganization may recognize gains but not losses.
• E)None of the above statements is true.

---

Definitions:

Impoverishment

The state of being extremely poor.

New Deal

A series of programs, public work projects, financial reforms, and regulations enacted by President Franklin D. Roosevelt in the United States during the 1930s to restore prosperity during the Great Depression.

Rigidly Segregated

An environment or society where individuals are strictly separated based on certain characteristics, such as race.

CCC

The Civilian Conservation Corps, a public work relief program that operated in the United States for unemployed, unmarried men during the Great Depression, part of the New Deal.