Which of the following statements is correct?
A) The sale of an unincorporated sole proprietorship is always treated as the sale of the individual business assets.
B) The sale of a partnership is treated as the sale of the individual assets only if the sales transaction is structured as the sale of the individual assets.
C) The sale of a corporation is either treated as the sale of the corporate stock or as the sale of the individual assets.
D) Only a. and b. are correct.
E) a., b., and c. are correct.

Question

Quizplus · Accepted Answer

In an unincorporated sole proprietorship, the owner and the business are the same entity, so the sale of the business is treated as the sale of the individual business assets (Option A).

In partnerships, the sale is treated as the sale of the individual assets only if the sales transaction is structured as the sale of the individual assets (Option B).

In corporations, the sale can be treated as the sale of the corporate stock or as the sale of the individual assets (Option C).

Therefore, options A, B, and C are all correct, making answer E the most appropriate choice.

Which of the Following Statements Is Correct