During the Current Year,Goldfinch Corporation Purchased 100% of the Stock

During the current year,Goldfinch Corporation purchased 100% of the stock of Dove Corporation and made a qualified election under § 338.Which of the following statements is incorrect with respect to the § 338 election?

A) Dove can recognize gain but not loss as a result of the § 338 election.
B) Dove may, but need not, be liquidated.
C) If Dove is liquidated, Goldfinch will have a basis in the assets received equal to Dove's basis in the assets.
D) Dove is treated as a new corporation as of the day following the qualified stock purchase date.
E) None of the above.