16. Moya Corporation adopted a plan of liquidation last year. All but a nominal amount of Moya's assets are distributed to its shareholders within the year. Which of the following statements is not true?

A) The liquidation of Moya Corporation means the corporation has undergone dissolution.

B) Moya Corporation retains its state charter.

C) Moya Corporation's existence is preserved.

D) Moya Corporation has been liquidated for tax purposes.

17. Riverwalk Corporation is liquidated, with Juan receiving $5,000 in money and other property having a $6,000 FMV. Juan's basis in his Riverwalk stock is $8,000. Upon liquidation, Juan must recognize a gain of

A) 0.

B) $2,000.

C) $3,000.

D) $11,000.

18. Identify which of the following statements is true.

A) With limited exceptions, a loss can be recognized by a liquidating corporation when it makes a liquidating distribution of property that has declined in value.

B) When computing the corporate-level gain on a liquidating distribution, the FMV of the property cannot exceed the liability assumed or acquired by the shareholder.

C) The FMV of property distributed by a liquidating corporation can be less than the amount of the liability assumed or acquired by the shareholder.

D) All of the above are false.