Question: Which statement is false with regard to the complete liquidation of a calendar year subsidiary which is 85% owned by its parent, and liquidated pursuant

Which statement isfalsewith regard to the complete liquidation of a calendar year subsidiary which is 85% owned by its parent, and liquidated pursuant to a parent/subsidiary liquidation?

Group of answer choices

No gain or loss is recognized by the parent corporation, and it has a FMV basis in the assets received.

A formal plan of liquidation must be adopted if the shareholders adopt a resolution authorizing the liquidation on 3/9/x3, and the liquidating distributions occur on 7/3/x3 and 10/16/x4.

The minority shareholder recognize gain or loss.

The subsidiary recognizes gain on its distributions to the minority shareholders, but not loss.

More than one of these statements is false.

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