Identify Which of the Following Statements Is False

Identify which of the following statements is false.

A) The basis to the purchasing member of property acquired in an intercompany transaction is the amount of cash paid to the selling member.
B) In general, buyers and sellers engaging in an intercompany transaction are treated as separate entities.
C) The holding period for property acquired in an intercompany transaction begins when the corresponding item is reported.
D) Inventory sales between group members are an example of an intercompany transaction.