Because boot is generated under § 357(b) (i.e., the liability is not supported by a bona fide business purpose), the transferor shareholder will always have to recognize gain
a. True
b. False
Indicate whether the statement is true or false
False
RATIONALE: Gain will be recognized only to the extent of realized gain. If gain is not realized, § 357(b) will not trigger recognized gain.
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