Compare the general liquidation rules with the Sec. $332$ rules for liquidation of a subsidiary corporation with respect to the recognition of gain or loss by the distributee corporation. $$ A$.$ Both Sec. $331$ and Sec $332$ rules state that neither a gain or loss can be recognized. $$ B$.$ The Sec. $332$ general liquidation rules require the distributor corporation's entire realized gain or loss to be recognized. Section $331,$ however, only permits realized gains to be recognized. $$ C$.$ Both Sec. $331$ and Sec $332$ rules state that a gain or loss must be recognized. O D$.$ The Sec. $331$ general liquidation rules require the distributee corporation's entire realized gain or loss to be recognized. Section $332,$ however, does not permit either a realized gain or loss to be recognized.