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:

Unanimous

Pertaining to a decision or opinion held or expressed by everyone in a group without dissent.

Business Plan

A detailed document that outlines the objectives, strategies, financial forecasts, and market analysis for a new or existing business.

Successful Entrepreneur

An individual who has managed to translate an idea into a profitable business, demonstrating innovation, risk-taking, and persistence.

Venture

A business endeavor involving risk, typically with the expectation of future financial gain.