Section 1248 Applies to Which of the Following Transactions

question 46

Multiple Choice

Section 1248 applies to which of the following transactions?

• A)Sale or exchange of stock in a U.S.corporation by a foreign person.
• B)Sale or exchange of stock in a U.S.corporation by a U.S.person.
• C)Sale or exchange of stock in a controlled foreign corporation by its 100% U.S.shareholder.
• D)Sale or exchange of stock in a foreign corporation that has never been a controlled foreign corporation by a U.S.person.
• E)None of the above transactions is affected by § 1248.

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Definitions:

Liable

Being legally responsible for something, typically involving a financial or legal obligation.

Contract

A lawful agreement among two or more parties that has legal authority and enforceability.

Respondeat Superior

A legal doctrine that holds an employer or principal legally responsible for wrongful actions taken by an employee or agent if such actions occur in the course of their employment or agency.

Unauthorized Acts

Unauthorized Acts are actions taken by an individual or entity that are not permitted or sanctioned by law, contract, or authority.