Select the best answer.Which of the following statements is true related to the conversion of a regular corporation to a limited liabcompany (LLC) taxed as a partnership?OAOO105In the conversion of a C corporation to an LLC taxed as a partnership, the transfer ofappreciated assets from the liquidating corporation is not taxed at the corporate level.The corporation can contribute its assets and liabilities into the new LLC in exchange forB. ownership interests. The corporation then distributes the LLC interests to its shareholders inliquidation of the shareholders' corporate stock.O D.If the corporation distributes its assets and liabilities to its shareholders in liquidation of theC. corporation, the shareholders are restricted from contributing these assets into the newpartnership.The existence of substantially appreciated intangibles and goodwill with little or no tax basishas no tax consequences when converting a C corporation to an LLC.Submit Answers100% CompleteExit

An American corporate structure called a limited liability company (LLC) shields its owners from…

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Which of the following statements is true related to the conversion of a regular corporation to a limited liab company (LLC) taxed as a partnership?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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Select the best answer.
Which of the following statements is true related to the conversion of a regular corporation to a limited liab
company (LLC) taxed as a partnership?
OA
O
O
105
In the conversion of a C corporation to an LLC taxed as a partnership, the transfer of
appreciated assets from the liquidating corporation is not taxed at the corporate level.
The corporation can contribute its assets and liabilities into the new LLC in exchange for
B. ownership interests. The corporation then distributes the LLC interests to its shareholders in
liquidation of the shareholders' corporate stock.
O D.
If the corporation distributes its assets and liabilities to its shareholders in liquidation of the
C. corporation, the shareholders are restricted from contributing these assets into the new
partnership.
The existence of substantially appreciated intangibles and goodwill with little or no tax basis
has no tax consequences when converting a C corporation to an LLC.
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Which of the following statements is true related to the conversion of a regular corporation to a limited liability company taxed as a partnership? A. In the conversion of a C corporation to an LLC taxed as a partnership, the transfer of appreciated assets from the liquidating corporations is not taxed at the corporate level. B. The corporation can contribute it's assets and liabilities into the new LLC in exchange for ownership interests. The corporation then distributes the LLC interests to it's shareholders in liquidation of the shareholders corporate stock. C. If the corporation distributes it's assets and liabilities to it's shareholders in liquidation of the new corporation, the shareholders are restricted from contributing these assets into the new partnership. D. The existence of substantially appreciated intangibles and goodwill with little or no tax basis has no consequences when converting a C corporation to an LLC