Property Received in a Corporate Liquidation by a Noncorporate Shareholder

Property received in a corporate liquidation by a noncorporate shareholder has

A) a basis equal to its FMV. Its holding period commences on the day after the distribution date.
B) a basis equal to its FMV reduced by any liabilities assumed by the shareholder. Its holding period commences on the day after the distribution date.
C) a basis equal to its basis on the liquidating corporation's books increased by any gain recognized by the shareholder upon receipt of the property. Its holding period commences on the day after the distribution date.
D) a basis equal to its basis on the liquidating corporation's books increased by any gain recognized by the shareholder upon receipt of the property. Its holding period includes the holding period of the shareholder's stock.