Which of the Following Statements Is Not True About Redemptions

question 90

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

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Definitions:

Intrinsic Motivation

The drive to engage in an activity for its own sake, due to personal satisfaction or interest, rather than for some separable consequence.

Extrinsic Motivation

Motivation driven by external rewards, such as money, fame, grades, and praise, rather than by intrinsic enjoyment or interest in the task itself.

Homeostatic Motivation

A drive to maintain internal equilibrium among bodily functions and needs.

Self-Actualization

The attainment or completion of one's skills and possibilities, viewed as a natural desire or requirement found in every person.