What is a tax consequence for a noncorporate shareholder who receives a liquidating distribution from acorporation?a. The property received is full payment in exchange for the shareholder's transferred stock.b. The shareholder does not assume the corporation's liability on the property received.c. The shareholder's basis in the property equals the corporation's basis in the property.d. The corporation's basis in the property is used to calculate the shareholder's gain or loss.

Liquidating distribution is the distribution of the money to the shareholders of the company which…

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What is a tax consequence for a noncorporate shareholder who receives a liquidating distribution from a corporation?

Income Tax Fundamentals 2020

38th Edition

ISBN:9780357391129

Author:WHITTENBURG

Publisher:WHITTENBURG

Chapter11: The Corporate Income Tax

Section: Chapter Questions

Problem 17MCQ

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Question

What is a tax consequence for a noncorporate shareholder who receives a liquidating distribution from a
corporation?
a. The property received is full payment in exchange for the shareholder's transferred stock.
b. The shareholder does not assume the corporation's liability on the property received.
c. The shareholder's basis in the property equals the corporation's basis in the property.
d. The corporation's basis in the property is used to calculate the shareholder's gain or loss.

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