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

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

The minority shareholder recognize gain or loss.

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

More than one of these statements is false.

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