Question : 1) Liquidation and dissolution have the same legal meaning. 2) In : 1876437

1) Liquidation and dissolution have the same legal meaning.

2) In a complete liquidation, a liability assumed by a shareholder reduces the shareholder's amount realized.

3) In general, a noncorporate shareholder that receives a distribution in complete liquidation of the liquidating corporation recognizes his or her entire realized gain as a capital gain.

4) The adjusted basis of property received in a complete liquidation is its fair market value on the distribution date.

5) Generally, a corporation recognizes a gain, but not a loss, on a liquidating distribution.

6) Section 336 prevents recognition of a loss when making a pro rata distribution of property to a related person.

7) The liquidation of a subsidiary corporation must be completed within one tax year to receive nonrecognition treatment.

8) A subsidiary recognizes no gain or loss on a distribution to a parent corporation owning more the majority of the subsidiary's stock in a complete liquidation.

9) A subsidiary must recognize depreciation recapture income when the subsidiary is liquidated into the parent.

10) Liquidating expenses are generally deducted as ordinary and necessary business expenses.