Identify which of the following statements is true.
A) When making a nonliquidating distribution, a corporation recognizes gains and losses.
B) When making a nonliquidating distribution, the corporation's E&P is reduced by the property's FMV even though the property's basis is greater than its FMV.
C) The holding period for property received by a shareholder in a nonliquidating distribution begins on the day after the distribution.
D) All of the above are false.
Correct Answer:
Verified
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