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The Amount of a Corporate Distribution Qualifying for Capital Recovery

question 80

True/False

The amount of a corporate distribution qualifying for capital recovery treatment which exceeds the recipient's stock basis is treated as an ordinary gain.


Definitions:

Shield Volcano

A type of volcano that has broad, gently curved slopes constructed mostly of relatively fluid basaltic lava flows.

Scoria Cone

A relatively small type of volcano that is cone shaped and mostly composed of scoria; synonymous with cinder cone.

Volcanic Dome

A dome-shaped volcanic feature, largely composed of solidified lava of felsic to intermediate composition.

Caldera

A large volcanic depression that is typically circular to elongate in shape and formed by collapse of a magma chamber.

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