Which of the following statements is false?

Group of answer choices

A. The distribution of stock rights WILL be TAXABLE if the value of the stock rights is more than 15% of the value of the underlying stock.

B. The holding period for stock rights includes the holding period for the underlying stock (i.e. tacking of holding period).

C. The distribution of stock dividends is GENERALLY tax-free under IRC 305 unless the distribution of shares results in the receipt of property by some shareholders and an increase in the proportionate interests of other shareholders.

D. If the value of stock rights received by shareholders is less than 15% of the value of the underlying stock, the shareholder's basis in the stock rights is zero unless the shareholder ELECTS to allocate some of their stock basis to the rights.