Which of the following statements regarding E&P of a liquidating corporation is incorrect?
a. The character of an individual shareholder's gain does not depend on the E&P of the liquidating corporation.
b. The E&P of the liquidating corporation is not reduced by the amount distributed in liquidation.
c. When a subsidiary is liquidated into its parent, the subsidiary's E&P is extinguished.
d. The process of liquidating may increase the E&P of the liquidating corporation.