Identify Which of the Following Statements Is True

Multiple Choice

Identify which of the following statements is true.

A) If both the current and accumulated E&P have deficit balances, a corporate distribution cannot be characterized as a dividend.
B) The shareholder's basis in property received in a nonliquidating distribution is the property's FMV reduced by liabilities assumed by the shareholder.
C) A corporation recognizes gain when distributing money as a dividend to its shareholders.
D) All of the above are false.