Which of the Following Statements Is Not True About Redemptions

question 63

Multiple Choice

Which of the following statements is not true about redemptions?

• A)Redemptions of Sec. 306 stock are generally treated as dividends to the shareholder.
• B)A sale of stock from one controlled corporation to another controlled corporation is treated as a redemption.
• C)Redemptions to pay death taxes are treated as dividends to the shareholder.
• D)A distribution in redemption of stock is generally a dividend.

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Definitions:

John B. Watson

An American psychologist known as the founder of behaviorism, emphasizing the study of observable behavior over the mind.

Structural Aspects

The elements related to the physical or organizational framework of a system, organization, or structure.

Abandon

To leave something behind or give up on it completely without any intention of returning or continuing.

Behaviourism

A behavioral science method focusing on the examination of behaviors that can be seen and the environmental factors that influence them.