Identify Which of the Following Statements Is True

question 58

Multiple Choice

Identify which of the following statements is true.

• A)Stock ownership attributed to a corporation from one of its shareholders cannot be attributed to another of the corporation's shareholders under the Sec. 318 attribution rules.
• B)Under the attribution rules relating to stock redemptions, a person who has an option to purchase stock is considered to own the stock.
• C)A stock redemption that qualifies as substantially disproportionate is a safe harbor for capital gain treatment.
• D)All of the above are true.

---

Definitions:

Phallic Stage

A phase in Freudian psychosexual development, occurring roughly between the ages of three and six, where the libido is centered on the genital area.

Anal Stage

The second stage in Freud's psychosexual development theory, happening around age 2, where the focus of pleasure is on controlling bladder and bowel movements.

Oral Stage

The first stage in Freud's psychosexual development, occurring from birth to approximately 18 months of age, where the mouth is the primary source of gratification.

Latency Stage

A phase in Freudian psychosexual development where sexual urges are repressed and children focus on social and intellectual skills.