Which of the following statements best describes the tax results to a shareholder in a...
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Accounting
Which of the following statements best describes the tax results to a shareholder in a 351 transaction when liabilities on property transferred to the corporation are assumed by the corporation?
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Liabilities assumed by a corporation on a 351 transfer are treated as boot if there is no business purpose for the assumption of the liabilities by the corporation.
Liabilities assumed by a corporation on a 351 transfer are always treated as boot.
Liabilities assumed by a corporation on a 351 transfer are never treated as boot.
Liabilities assumed by a corporation on a 351 transfer are treated as boot if the total liabilities assumed exceed the total basis of the assets transferred.
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