Identify Which of the Following Statements Is True

question 58

Multiple Choice

Identify which of the following statements is true.

• A)Stock ownership attributed to a corporation from one of its shareholders cannot be attributed to another of the corporation's shareholders under the Sec. 318 attribution rules.
• B)Under the attribution rules relating to stock redemptions, a person who has an option to purchase stock is considered to own the stock.
• C)A stock redemption that qualifies as substantially disproportionate is a safe harbor for capital gain treatment.
• D)All of the above are true.

---

Definitions:

Sternocleidomastoid

A major muscle in the neck that extends from the sternum and clavicle to the mastoid process of the temporal bone of the skull, involved in rotating and flexing the neck.

Latissimus Dorsi

A large, flat muscle on the back that stretches to the sides, behind the arm, and is involved in the movement of the shoulders and arms.

Insertion

Insertion refers to the placement of an object or substance into a body part or into a device, often used in medical procedures or mechanical processes.

Origin

The point or place where something begins, arises, or is derived.