Identify which of the following statements is false.
A)Askew Corporation has ten unrelated shareholders, each of whom owns 10% of the outstanding stock. This corporation is a personal holding company.
B)Stock owned by an individual, in addition to stock attributed from her spouse, parents, children, and siblings, are all counted towards whether or not the personal holding company stock ownership test has been met.
C)S corporations and tax-exempt organizations are excluded from the personal holding company (PHC)definition.
D)A person who holds an option to acquire stock is considered to own the stock for purposes of the PHC stock requirements.

Question

Quizplus · Accepted Answer

The statement that Askew Corporation is a personal holding company is false. A personal holding company is a corporation that meets certain ownership and income requirements outlined in the tax code. The fact that Askew Corporation has ten unrelated shareholders, each owning 10% of the stock, does not necessarily make it a personal holding company.

Identify Which of the Following Statements Is False