Which of the Following Statements Is True

Multiple Choice

Which of the following statements is true?

A) The dollar amounts involved in reorganizations are generally substantial; thus, it is important that the financial and tax treatment of the reorganization is consistent.
B) A letter ruling indicates the income tax treatment the IRS will apply to the proposed corporate restructuring transaction.
C) Careful planning can ensure that all gains recognized by individual shareholders receive beneficial dividend treatment.
D) Corporations prefer to recognize capital gains on reorganizations because they can offset the capital losses they may have.
E) None of the statements is true.