Indicate whether each of the following statements about a liquidation is true or false. If the statement is false, explain why.

1. Liabilities assumed by a shareholder when a corporation liquidates reduce the amount realized by the shareholder on the surrender of his or her stock.
2. The loss recognized by a shareholder on a liquidation generally is characterized as an ordinary loss.
3. A shareholders basis for property received in a liquidation is the same as the propertys basis in the liquidating corporations hands.
4. The holding period for property received in a liquidation includes the period of time it is held by the liquidating corporation.
5. The tax attributes of a liquidating corporation are assumed ratably by its shareholders.
6. A parent corporation can elect to recognize gain or loss when it liquidates a controlled subsidiary corporation.
7. A liquidating subsidiary recognizes no gain or loss when it distributes its property to its parent corporation.
8. A parent corporations basis for the assets received in a liquidation where gain is not recognized remains the same as it was to the liquidating subsidiary corporation.