Multiple Choice
Sam wishes to purchase Kitchen Cabinets, Inc. (KCI) Which of the following is TRUE if Sam purchases the assets of the corporation rather than the shares from the company's sole shareholder, Brent?
A) Payment of the purchase price will flow directly to Brent.
B) Sam will have no choice but to assume the liabilities of KCI.
C) Kitchen Cabinets Inc. may be subject to business income and capital gains.
D) Brent will be eligible to use for the capital gains deduction on the sale.
Correct Answer:
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