Identify Which of the Following Statements Is False

Multiple Choice

Identify which of the following statements is false.

A) A stock redemption is treated as a sale or exchange only if the shareholder's ownership of one particular class of stock is terminated.
B) An individual is not considered to own stock owned by a brother under the family attribution rules of Sec. 318.
C) An individual is considered to own the stock owned by his parents, children, spouse, and grandchildren under the family attribution rules of Sec. 318.
D) A person who has an option to purchase stock is considered to own the stock.