Hippo Co. is a holding company. It holds all the shares of Opco. Shareholder H holds all the shares of Hippo Co. What should Opco be directed to do prior to its sale in order to minimize taxable capital gains?

Select the correct response:

• Transfer all shares in Opco to Shareholder H prior to the sale
• Pay a tax-free dividend to Hippo Co. from Opco prior to the sale
• Transfer all assets to Hippo Co. before the sale
• Transfer all the shares of Hippo Co. to shareholder H prior to the sale