Which of the Following Statements Best Describes the Recognition of Loss

question 118

Multiple Choice

Which of the following statements best describes the recognition of loss on property transferred to shareholders in complete liquidation of a corporation?

• A)The liquidated corporation always recognizes loss on the distribution of property in complete liquidation of the corporation.
• B)The liquidated corporation never recognizes loss on the distribution of property in complete liquidation of the corporation.
• C)The liquidated corporation recognizes loss on the distribution of property in complete liquidation of the corporation if the property is distributed to individuals who are not related parties to the corporation.
• D)The liquidated corporation recognizes loss on the distribution of property in complete liquidation of the corporation only if the property is distributed to individuals who are related parties to the corporation.

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Definitions:

National Industrial Recovery Act

A law enacted in 1933 in the United States to authorize the President to regulate industry in an attempt to raise prices after severe deflation and stimulate economic recovery.

NLRB v. Jones and Laughlin Steel Corporation

A landmark 1937 United States Supreme Court case that upheld the constitutionality of the National Labor Relations Act, affirming the national government's power to regulate labor relations.

Federal Mediation and Conciliation Service

A U.S. government agency that provides mediation and conciliation services to facilitate the resolution of labor disputes between unions and employers.

Voluntary Mediation

A process where parties in dispute agree to seek a resolution with the help of a neutral third-party mediator without the involvement of a court.