In comparing a stock redemption with a complete liquidation, which of the following statements is incorrect?

a. Both a qualified stock redemption and a distribution pursuant to a complete liquidation produce sale or exchange treatment to the shareholder.

b. Although a corporation will recognize gain upon both a stock redemption using appreciated property and a distribution of appreciated property in a complete liquidation, a corporation will not recognize loss upon a distribution of its assets in both a stock redemption and a complete liquidation.

c. Liquidations and stock redemptions parallel each other in terms of the effect that E & P has on the nature of the gain or loss recognized by the shareholder.

d. Losses between related parties are not allowed in a stock redemption transaction but are recognized by shareholders in a complete liquidation. e. All of the above statements are correct.

Explain