Tax attribution rules can cause confusion. Which of the following statements about redemptions is correct?

Select one:

a.Under Sec. 318 a 10% shareholder of a corporation is considered to own 10% of all the different stocks that is owned by the corporation.

b.If after a redemption a shareholder's ownership percentage is "substantially reduced", the redemption is treated as a sale.

c.All the above are false.

d.The family attribution rules of Sec. 318 can only apply to two family generations.