A liquidating corporation could either$(1)$ sell its assets and then distribute remaining cash to its shareholders or$(2)$ distribute its assets directly to the shareholders who then sell the distributed assets. Do the tax consequences of these alternatives$$ differ?

A$.$No$,$ the results are normally the same unless the corporation is subject to loss limitation rules upon the distribution of property to certain shareholders.

B$.$No$,$ the results are the same regardless of how a corporation distributes its liquidating assets.

C$.$Yes$,$ when a corporation sells its ssets and then distributes cash to its$$ shareholders, the gain or loss flows through to the shareholders and the corporation recognizes no gain or loss.$$ However, if assets are distributed directly to the$$ shareholders, the corporation will recognize the gain or$$ loss, not the shareholders.

D$.$ None of the above.