Identify Which of the Following Statements Is True

Multiple Choice

Identify which of the following statements is true.

A) To have a bona fide partial liquidation, a firm must continue to conduct a qualified trade or business, which it had conducted for a period of more than three years prior to the redemption.
B) To qualify as a partial liquidation, a distribution must result in a bona fide contraction of the corporate business at the corporate level.
C) A partial liquidation of a corporation must be pro rata.
D) All of the above are false.