Identify which of the following statements is true.

A. The distributing corporation's E&P must be reduced by the FMV of nontaxable stock rights distributed to shareholders.

B. A shareholder can redeem part of his stock and recognize a capital gain if the corporation has only one shareholder.

C. A stock redemption can be used to withdraw some assets from a corporation prior to a sale of the business.

D. All of the above are false.