Which One of the Following Statements About Property Distributions Is

question 162

Multiple Choice

Which one of the following statements about property distributions is false?

• A)When the basis of distributed property is greater than its fair market value, a deficit may be created in E & P.
• B)When the basis of distributed property is less than its fair market value, the distributing corporation recognizes gain.
• C)When the basis of distributed property is greater than its fair market value, the distributing corporation does not recognize loss.
• D)The amount of a distribution received by a shareholder is measured by using the property's fair market value.
• E)All of the above statements are true.

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Definitions:

Obstacles to Recovery

Factors or circumstances that hinder or prevent an individual or entity from recovering from a loss or injury.

Section 402A

A section of the Restatement (Second) of Torts that established the principle of strict liability for defective products, making manufacturers and sellers liable for damages caused by defective products.

Implied Warranty of Fitness

A legal assumption in many jurisdictions that a product sold will be suitable for the particular purpose for which the buyer intends to use it.

"As Is"

A term specifying that an item is being sold in its current condition, with all faults and without warranty, typically in a sales contract.