Business Entity

Which of the following structures is not permitted: 13. An S corporation owns 85% of a C corporation. The other 15% of the C corporation is owned by individual A. a. An S corporation owns 85% of a partnership. The other 15% of the partnership is owned by individual A. b. An S corporation owns 99% of another S corporation. The other 1% of the S corporation is owned by individual A. c. An S corporation owns 100% of another S corporation. d. The treatment of distributions in liquidations differs from that in non-liquidating distributions in that the corporation is always allowed to recognize loss on a liquidating distribution. TRUE or FALSE? 41. A partnership that distributes an asset the FMV of which exceeds its inside basis must recognize gain equal to the excess. TRUE or FALSE? 42. A partner never recognizes loss upon the receipt of a current distribution from a partnership. TRUE or FALSE? 43