Match the Following Items with the Statements That Follow

question 31

Multiple Choice

Match the following items with the statements that follow. Terms may be used more than once.
-Shareholders recognize gain to the extent the restructuring qualifies as a redemption.

• A)Boot
• B)Business credits
• C)Capital gain
• D)Continuity of business enterprise
• E)Continuity of interest
• F)Dividend
• G)Discount rate
• H)Earnings and profits
• I)Federal long-term tax-exempt rate
• J)Liability assumption
• K)Ordinary gain
• L)Ownership change
• M)Section 382 limitation
• N)Sound business purpose
• O)Step transaction

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Definitions:

Formation

The process of forming or being formed; the creation of a certain shape or structure.

-Phasia

A suffix relating to speech or language disorders, such as aphasia, which refers to a condition characterized by the loss of the ability to understand or express speech.

To Speak

The act of using vocalizations to express thoughts, ideas, or feelings.

Cystotomy

A surgical procedure that involves cutting into the urinary bladder.