Which of the following statements is true regarding a split off?

A split-off is the distribution of shares of a subsidiary company to shareholders in the form of a dividend.

In a split-off, the parent company exchanges shares that it owns in a subsidiary for shares of the parent company owned by its stockholders.

Only a split-off can result in the recognition of a gain if the distribution of shares to the stockholders is not pro rata.

Answers b and c only

All of these statements are true regarding a split-off.