A Liquidated Corporation Will Always Recognize Gain in a Complete

question 54

True/False

A liquidated corporation will always recognize gain in a complete liquidation.
Gain realized is not recognized if the distribution is to a corporate shareholder and is tax deferred under section 332.

---

Definitions:

Securities Exchange Act of 1933

This foundational law regulates the securities industry in the United States, requiring transparency in financial statements to protect investors; similar purpose but distinct from KT-2 by ensuring ongoing disclosure by publicly traded companies.

Section 11

A provision found in securities law, particularly the Securities Act of 1933 in the United States, that deals with the liability associated with false or misleading statements in a company's registration statement.

Federal Government Cancels

Actions taken by the federal government to void or terminate a contract, policy, or agreement.

Registration Statement

A set of documents submitted by a company to the Securities and Exchange Commission (SEC) prior to issuing stock or securities to the public, containing detailed financial and operational information about the company.