Test Bank SWFT Comprehensive 2010 ch 20

Test Bank SWFT Comprehensive 2010 ch 20 - CHAPTER 20...

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CHAPTER 20 CORPORATIONS: DISTRIBUTIONS IN COMPLETE LIQUIDATION AND AN OVERVIEW OF REORGANIZATIONS Instructor: The test items in both the print Test Bank and ExamView test-creation software are numbered by question type within each chapter. Thus, users of ExamView can more easily preview their selections using the printed Test Bank in the same numbering system. Learning Objective, Level of Difficulty, Estimated Time to Completion, and the AACSB’s and AICPA’s Core Competencie s for each test item are located within the item itself. Status: Q/P Question/ Present in Prior Problem Topic Edition Edition TRUE OR FALSE 1 Liquidation for tax purposes: state law Unchanged 1 2 Liquidating and nonliquidating distributions New compared: loss recognized by corporation 3 Recognition of gains and losses by corporation on Unchanged 3 liquidation: general rule 4 Related-party loss limitation: definition of New disqualified property 5 Built-in loss limitation: presumption of tax New avoidance 6 Complete liquidation: tax consequences to Unchanged 6 7 Deferral of gain on installment notes in liquidations Unchanged 7 8 Section 332: insolvent subsidiary Modified 8 9 Section 332: recognition of gain and loss on Unchanged 9 distributions to minority shareholders 10 Section 332: basis of property received Unchanged 10 11 Section 332: carryover of business credit Unchanged 11 12 Section 338: qualified stock purchase Modified 12 13 Section 338: effect of election on subsidiary Unchanged 14 14 Section 338: effect of election on subsidiary Modified 15 15 Asset purchase versus stock purchase New 16 Business development encouraged Unchanged 16 17 IRS letter ruling New 18 Tax law consideration New 19 Dividends versus capital gains Unchanged 19 20 Step transaction doctrine Unchanged 20 21 Reorganizations similar to like-kind exchanges Unchanged 21 20-1
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20-2 2010 Comprehensive Volume/Test Bank 22 Original reorganization view by courts and Congress Unchanged 22 Status: Q/P Question/ Present in Prior Problem Topic Edition Edition 23 Target gain recognition New 24 Recognition of gain in reorganization New 25 Shareholder gain in a tax-free reorganization Unchanged 25 26 Recognition of gains and losses by shareholders Unchanged 26 27 Qualifying for stock redemption treatment Unchanged 27 28 Treatment of debt security holders New 29 Basis in stock and securities received New MULTIPLE CHOICE 1 Gain and loss recognition to liquidating corporation Unchanged 1 2 Liquidating distribution of property subject to Unchanged 2 liability in excess of fair market value 3 Related-party loss limitation: non-pro rata distribution New 4 Related-party loss limitation: non-pro rata distribution Unchanged 4 5 Related-party loss limitation: nonapplicability to a sale Modified 5 6 Built-in loss limitation: sale pursuant to liquidation Modified 6 and no business purpose 7 Built-in loss limitation: business purpose Unchanged 7 8 Basis of property received in complete liquidation
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Test Bank SWFT Comprehensive 2010 ch 20 - CHAPTER 20...

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