All of the following statements are true about corporate reorganization except:
a. Taxable amounts for shareholders are classified as a dividend or capital gain.
b. Reorganizations receive treatment similar to corporate formations under ยง 351.
c. The transfers of stock to and from shareholders qualify for like-kind exchange treatment.
d. The value of the stock received by the shareholder less the gain not recognized (postponed) will equal the shareholder's basis in the stock received.
e. All of the above statements are true.
c
RATIONALE: Reorganizations do not qualify for like-kind treatment.
You might also like to view...
A fact that does not excuse a crime but may be considered to lessen punishment is called a[n] ________ circumstance.
Fill in the blank(s) with the appropriate word(s).
A company's store was destroyed by an earthquake on February 10 of the current year. The only information for the current period that could be salvaged included the following:Beginning inventory, January 1:$44,000Purchases to date:$198,000Sales to date:$310,000Historically, the company's gross profit ratio has been 30%. Estimate the value of the destroyed inventory using the gross profit method.
What will be an ideal response?
Which of the following is not a characteristic of a corporation?
A) Corporations are organized as a separate legal taxable entity B) Ownership is divided into shares of stock. C) Corporations experience an ease in obtaining large amounts of resources by issuing stock. D) A corporation's resources are limited to their individual owners' resources.
A document in a job order costing system that is used to record the costs of producing a job is a(n):
A. Job lot. B. Job cost sheet. C. Units-of-production sheet. D. Process cost system. E. Finished goods summary.