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