Question

One consequence of a property distribution by a corporation to a shareholder is thatA.the holding period of the distributed property includes the holding period of the distributing corporation.B.the shareholder's basis in the distributed property is the same as the distributing corporation's basis.C.any liabilities assumed by the shareholder do not reduce the shareholder's basis.D.the amount of the distribution is increased by any liability assumed by the shareholder.

Answer 1

C.

Step-by-step explanation:

Any liabilities assumed by the shareholder do not reduce the shareholder's basis.