Identify Which of the Following Statements Is True

Identify which of the following statements is true.

A) When computing the corporate- level gain on a liquidating distribution, the FMV of the property cannot exceed the liability assumed or acquired by the shareholder.
B) The FMV of property distributed by a liquidating corporation can be less than the amount of the liability assumed or acquired by the shareholder.
C) With limited exceptions, a loss can be recognized by a liquidating corporation when it makes a liquidating distribution of property that has declined in value.
D) All of the above are false.