Identify Which of the Following Statements Is True

question 87

Multiple Choice

Identify which of the following statements is true.

• A) Corporations without E&P can distribute preferred stock as a stock dividend that is Sec. 306 stock.
• B) The distribution of preferred stock as a stock dividend will result in income or a taxable gain being recognized by the shareholder on the date of the distribution if the stock is Sec. 306 stock.
• C) Two corporations are considered to be brother- sister corporations for purposes of the Sec. 304 redemption rules if one shareholder owns more than 50% of each corporation.
• D) All of the above are false.

---

Definitions:

Tinker V. Des Moines

A significant Supreme Court decision in 1969 that defined the constitutional rights of students in U.S. public schools, determining that students do not "shed their constitutional rights to freedom of speech or expression at the schoolhouse gate."

Symbolic Speech

An act of communication that is intended to convey a particular message or statement without the use of words, recognized and protected under free speech laws.

Constitutional Protection

Rights and freedoms guaranteed to individuals and entities under the Constitution, safeguarded against infringement by the government.

Griswold V. Connecticut

A landmark Supreme Court case in 1965 that established the right to privacy regarding marital contraception, leading to greater privacy rights in personal matters.