Identify Which of the Following Statements Is True

Multiple Choice

Identify which of the following statements is true.

A) Section 336 prevents recognition of a loss when making a pro rata distribution of property to a related person.
B) A liquidating distribution of property other than a disqualified property that is made ratably to all shareholders (based on their stockholdings) will permit the recognition of loss on the portion of the distribution that is made to a related person.
C) A subsidiary corporation can recognize losses on distributions to either the parent corporation or minority shareholders in a Sec. 332 liquidation.
D) All of the above are false.