Which of the Following Statements Is Not True About Redemptions

question 63

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

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Definitions:

Conditioned Stimulus

An initially impartial stimulus which, upon association with an unconditioned stimulus, gradually brings about a conditioned response.

Unconditioned Stimulus

A stimulus that naturally triggers a reflexive response without the need for prior learning.

Stimulus Generalization

A learning process in which the conditioned response is evoked by stimuli that are similar to the conditioned stimulus.

Conditioned Response

A learned response to a previously neutral stimulus that becomes associated with a conditioned stimulus.