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As a result of a Redemption, a shareholder's direct and indirect (ie. Stock Attribution Rules effect) ownership in a corporation decreased from sixty percent

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As a result of a Redemption, a shareholder's direct and indirect (ie. Stock Attribution Rules effect) ownership in a corporation decreased from sixty percent (60%) to forty-eight percent (48%). Under these circumstances, the Redemption qualifies for sale (Redemption) treatment. True False QUESTION 4 Mercedes and her daughter, Charlotte, are the sole shareholders of Amelia Corporation. Mercedes terminates her entire stock ownership in Amelia Corporation. One (1) year later, Mercedes loans Amelia Corporation $50,000. Because of this loan, the termination of Mercedes' stock ownership the year before can no longer be treated as a stock redemption. False True

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