Indicate whether each of the following statements about a liquidation is true or false. If the statement is false, explain why.
a. Liabilities assumed by a shareholder when a corporation liquidates reduce the amount realized by the shareholder on the surrender of his or her stock.
b. The loss recognized by a shareholder on a liquidation generally is characterized as an ordinary loss.
c. A shareholder’s basis for property received in a liquidation is the same as the property’s basis in the liquidating corporation’s hands.
d. The holding period for property received in a liquidation includes the period of time it is held by the liquidating corporation.
e. The tax attributes of a liquidating corporation are assumed ratably by its shareholders.
f. A parent corporation can elect to recognize gain or loss when it liquidates a controlled subsidiary corporation.
g. A liquidating subsidiary recognizes no gain or loss when it distributes its property to its parent corporation.
h. A parent corporation’s basis for the assets received in a liquidation where gain is not recognized remains the same as it was to the liquidating subsidiary corporation.