Identify Which of the Following Statements Is True

question 33

Multiple Choice

Identify which of the following statements is true.

• A) For a redemption to be essentially equivalent to a dividend, the shareholder must not have control of the corporation immediately following the redemption.
• B) The Sec. 318 family attribution rules can be waived for purposes of the Sec. 302(b)(3) complete termination rules even though the redeeming shareholder is a creditor of the corporation.
• C) Waiver of the Sec. 318 family attribution rules is permitted for all related party stock transactions.
• D) All of the above are false.