1. What is a tax consequence for a noncorporate shareholder who receives a liquidating distribution from a corporation?

1. The property received is full payment in exchange for the shareholder's transferred stock.
2. The shareholder does not assume the corporation's liability on the property received.
3. The shareholder's basis in the property equals the corporation's basis in the property.
4. The corporation's basis in the property is used to calculate the shareholder's gain or loss.