Identify Which of the Following Statements Is True

Multiple Choice

Identify which of the following statements is true.

A) The holding period for property received by a shareholder in a nonliquidating distribution begins on the day after the distribution.
B) When making a nonliquidating distribution, a corporation recognizes gains and losses.
C) When making a nonliquidating distribution, the corporation's E&P is reduced by the property's FMV even though the property's basis is greater than its FMV.
D) All of the above are false.