Which of the Following Is a False Statement Regarding Transactions

Which of the following is a false statement regarding transactions between corporations and their shareholders?

A) Corporations are not allowed to deduct a loss incurred in a transaction between related parties.
B) A shareholder owning 50 percent of a corporation's outstanding stock is a related party according to the general rule.
C) In the case of a personal service corporation, any employer-owner that owns any of the corporation's stock is a related party under certain conditions.
D) The sale of property at a gain between a corporation and its controlling shareholders is not affected by the related parties rules.