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Identify which of the following statements is false. The rules for the recognition of gain...

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Finance

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Identify which of the following statements is false. The rules for the recognition of gain or loss by a corporation that distributes property in redemption of its stock are the same as the rules for property distributions that are not in redemption of stock. Under Sec. 311, a corporation does not recognize a loss when it distributes property that has declined in value. When a stock redemption is considered a sale of stock by the shareholder, the E&P of the redeeming corporation is reduced by the FMV of the property used to redeem the stock. Generally little or no gain is recognized by the redeeming shareholder in a qualified Sec. 303 redemption

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