Identify which of the following statements is true.

A. When boot is received in a Sec. 355 spin-off transaction, the FMV of the boot will be a dividend to the extent of the shareholder's ratable share of the distributing corporation's E&P.
B. Tax-free split-offs and spin-offs coming under Sec. 355 require the surrender of shareholder stock.
C. A tax-free spin-off coming under Sec. 355 occurs when a parent corporation distributes stock in a controlled subsidiary corporation in exchange for some of its own stock.
D. All of the above are false.


Answer: A

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