Which of the Following Is an Incorrect Statement Regarding the Application

question 4

Multiple Choice

Which of the following is an incorrect statement regarding the application of the § 318 stock attribution rules?

• A) An individual is not deemed to own the shares owned by his or her siblings.
• B) Stock owned by an estate is deemed to be owned in full by a beneficiary.
• C) Stock owned by any shareholder owning 50% or more of a corporation's stock is deemed to be owned in full by the corporation.
• D) Stock owned by a partnership is deemed to be owned proportionately by a partner.
• E) None of the above.

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Definitions:

Fraction Notation

A way of expressing a portion of a whole, using two numbers divided by a bar or slash, where the top number (numerator) is divided by the bottom number (denominator).

Exponential Notation

A mathematical way to express repeated multiplications of a number by itself, commonly written as a base raised to the power of an exponent.

Sales Tax

A tax imposed by the government on the sale of goods and services.

Percentage

A percentage is a mathematical term that describes a number expressed as a fraction of 100, used to denote a portion of a total.