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.

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Definitions:

Paradoxical

Describes something that appears self-contradictory or absurd but may in fact contain a possible truth.

Thought Suppression

The psychological attempt to push thoughts out of one's mind, which can paradoxically lead to an increase in the frequency of those thoughts.

Psychological Disorders

Conditions characterized by abnormal thoughts, feelings, and behaviors that may cause distress or interfere with a person's ability to function.

Ironic Processing

The psychological process wherein attempts to suppress certain thoughts make them more likely to surface.