Identify Which of the Following Statements Is True

question 49

Multiple Choice

Identify which of the following statements is true.

• A) Generally in a stock redemption, if the shareholder's ownership percentage is substantially reduced, the redemption is treated as a sale.
• B) A 10% shareholder of a corporation is considered to own 10% of any stock that is owned by the corporation under the Sec. 318 attribution rules.
• C) The family attribution rules of Sec. 318 are as inclusive as the family attribution rules of Sec. 267.
• D) All of the above are false.

---

Definitions:

Epicurus

An ancient Greek philosopher who founded Epicureanism, a philosophy that sought to find the greatest happiness through the pursuit of modest pleasures and the freedom from fear and pain.

Human Existence

The state or fact of living or having objective reality, typically considered within the context of what it means to be human.

Tranquil Mind

A state of mental calm and clarity, free from agitation, stress, or anxiety.

Unlimited Pleasure

The concept of seeking pleasure without any constraints or consideration of possible negative consequences.