Which of the following statements is correct with respect to a partial liquidation?
A) The genuine contraction of a corporate business requirement is a subjective test that taxpayers cannot rely upon with certainty.
B) The distribution of proceeds from the sale of marketable securities (held for investment) to shareholders in exchange for part of their stock will satisfy the not essentially equivalent to a dividend test.
C) A stock redemption pursuant to a partial liquidation cannot be pro rata with respect to the shareholders.
D) The termination of a business test requires that the distributing corporation actively conducted at least three trades or businesses for at least five years.
E) None of the above.

Question

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The Answer of Which of the following statements is correct with respect to a partial liquidation?
A) The genuine contraction of a corporate business requirement is a subjective test that taxpayers cannot rely upon with certainty.
B) The distribution of proceeds from the sale of marketable securities (held for investment) to shareholders in exchange for part of their stock will satisfy the not essentially equivalent to a dividend test.
C) A stock redemption pursuant to a partial liquidation cannot be pro rata with respect to the shareholders.
D) The termination of a business test requires that the distributing corporation actively conducted at least three trades or businesses for at least five years.
E) None of the above.

Which of the Following Statements Is Correct with Respect to a Partial