Two of the following statements are false as it relates to qualifying as a real estate investment trust. Please circle one of them. A REIT must:

• Be structured as corporation, trust, or association.
• Be managed by a board of directors or trustees.
• Have shares that are fully transferable.
• Be taxable as a domestic corporation.
• Have only one class of stock.
• Not be a financial institution or an insurance company.
• Be jointly owned by 100 persons or more.
• Pay dividends of at least 90% of the REIT's taxable income.
• No more than 50% of the shares can be held by five or fewer individuals during the last half of each taxable year.
• Have only shareholders that are U.S. citizens or residents.
• At least 75% of total assets must be invested in real estate.
• Derive at least 75% of gross income from rents or mortgage interest.
• No more than 20% of its assets may consist of taxable REIT subsidiaries