Which of the following is not a condition that permits a stock redemption to be treated as a sale?
A)It provides funds for payment of income taxes.
B)It is not essentially equivalent to a dividend.
C)The redemption is substantially disproportionate.
D)The redemption completely terminates the shareholder's interest.

Question

Quizplus · Accepted Answer

A stock redemption treated as a sale occurs under specific conditions that do not include providing funds for payment of income taxes. Conditions that permit such treatment include not being essentially equivalent to a dividend, being substantially disproportionate, or completely terminating the shareholder's interest.

Which of the Following Is Not a Condition That Permits