Identify Which of the Following Statements Is True

question 41

Multiple Choice

Identify which of the following statements is true.

• A) To qualify as a partial liquidation, a distribution must result in a bona fide contraction of the corporate business at the corporate level.
• B) A partial liquidation of a corporation must be pro rata.
• C) 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.
• D) All of the above are false.