Which of the following statements is FALSE? Group of answer choices a. Corporations without earnings & profits at the date of the stock dividend can distribute a preferred stock dividend without being subject to the "tainted stock" rules of IRC 306. b. A preferred Stock Bailout transaction usually begins by a C corporation issuing a non-taxable dividend of non-voting preferred stock to its common shareholders followed by a sale of that preferred stock to an unrelated third party investor who redeems the preferred stock with the corporation in exchange for the investor's desired corporate property. c. The purpose for issuing the preferred stock in "the preferred stock bailout" is to allocate common stock basis to the preferred stock before it is sold to the unrelated 3rd party investor, thereby securing partial stock basis recovery upon its sale. The end result is the common shareholders recover the basis allocated to the preferred stock while at the same time not changing the common shareholders ownership position in the common stock of the corporation. d. Redemptions of 306 "tainted stock" are generally treated as a sale or exchange of the redeemed stock by the shareholder.