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26. Identify which of the following statements is true.

A) A liquidating distribution of property other than a disqualified property that is made ratably to all shareholders (based on their stockholdings) will permit the recognition of loss on the portion of the distribution that is made to a related person.

B) A subsidiary corporation can recognize losses on distributions to either the parent corporation or minority shareholders in a Sec. 332 liquidation.

C) Section 336 prevents recognition of a loss when making a pro rata distribution of property to a related person.

D) All of the above are false.

28. A liquidation must be reported to the Internal Revenue Service on Form 966

A within 60 days of the adoption of a plan of liquidation.

B) that is filed with the national IRS office.

C) whether the shareholders' realized gain is recognized or not.

D) by the shareholders.