【正文】 201 CHAPTER 20 CORPORATIONS: DISTRIBUTIONS IN COMPLETE LIQUIDATION AND AN OVERVIEW OF REORGANIZATIONS Instructor: The test items in both the print Test Bank and ExamView testcreation 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 Competencies 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 pared: loss recognized by corporation 3 Recognition of gains and losses by corporation on Unchanged 3 liquidation: general rule 4 Relatedparty loss limitation: definition of New disqualified property 5 Builtin loss limitation: presumption of tax New avoidance 6 Complete liquidation: tax consequences to Unchanged 6 shareholder。 E amp。 P not relevant 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 Reanizations similar to likekind exchanges Unchanged 21 202 2020 Comprehensive Volume/Test Bank 22 Original reanization 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 reanization New 25 Shareholder gain in a taxfree reanization 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 Relatedparty loss limitation: nonpro rata distribution New 4 Relatedparty loss limitation: nonpro rata distribution Unchanged 4 5 Relatedparty loss limitation: nonapplicability to a sale Modified 5 6 Builtin loss limitation: sale pursuant to liquidation Modified 6 and no business purpose 7 Builtin loss limitation: business purpose Unchanged 7 8 Basis of property received in plete liquidation New 9 Use of installment method to defer shareholder gain Modified 9 in a plete liquidation 10 Section 332 liquidation: nonrecognition of gain to Modified 10 parent and subsidiary 11 Section 332 liquidation: consequences to parent, Unchanged 11 minority shareholder, and subsidiary 12 Section 332 liquidation: transfer in satisfaction of Unchanged 12 indebtedness to parent 13 Section 332 liquidation: consequences to parent, New subsidiary, and minority shareholder 14 Section 332 liquidation: basis of property received。 Modified 14 step down from stock basis 15 Tax consequences of a 167。 338 election Unchanged 15 16 Tax consequences of a 167。 338 election Unchanged 16 17 Tes of tax policy for reanizations New 18 Gains recognized in reanizations Unchanged 18 19 Types of reanizations Unchanged 19 20 Shareholder treatment under 167。 368 New 21 Dividends recognized in a reanization Unchanged 21 22 Redemption treatment Unchanged 22 23 Exchange of bonds in a reanization Unchanged 23 24 Nonrecognition of loss and basis calculation Unchanged 24 Status: Q/P Corporations: Complete Liquidation and an Overview of Reanizations 203 Question/ Present in Prior Problem Topic Edition Edition PROBLEMS 1 Corporate liquidation: relatedparty loss limitation Modified 1 2 Corporate liquidation: builtin loss limitation Modified 2 3 Distribution of installment notes in plete Modified 3 liquidation: tax consequences to corporation and shareholder 4 Section 332 liquidation: consequences to parent, New subsidiary, and minority shareholder 5 Section 338: qualified stock purchase and Unchanged 5 election deadline 6 Dividend and redemption treatment Unchanged 6 ESSAY 1 Antistuffing rules: reason for enactment New 2 Section 332 liquidation: selecting assets for Unchanged 1 distribution when minority shareholder exists 3 Section 338 election: requirements and Unchanged 2 tax consequences 4 Comparison of sale of corporate assets to sale of Unchanged 3 corporate stock 5 Comparison of reanization with likekind New exchange 204 2020 Comprehensive Volume/Test Bank TRUE/FALSE 1. Legal dissolution under state law is required for a liquidation to be plete for tax purposes. ANS: F State law does not control in determining whether a liquidation has occurred for tax purposes. Rather, the test is whether the corporation has ceased to be a going concern. PTS: 1 DIF: 1 REF: p. 202 OBJ: 4 NAT: AICPA FNR