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Which one of the following statements about property distributions is NOT correct? When the basis of distributed property is greater than its fair market value,
Which one of the following statements about property distributions is NOT correct?
| When the basis of distributed property is greater than its fair market value, a deficit may be created in E & P. | ||
| When the basis of distributed property is less than its fair market value, the distributing corporation recognizes gain. | ||
| When the basis of distributed property is greater than its fair market value, the distributing corporation does not recognize loss. | ||
| The amount of a distribution received by a shareholder is measured by using the property s fair market value |
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