Which of the following statements regarding distributions of stock is not true?

Question

Which of the following statements regarding distributions of stock is not true?

a. Distributions of stock and stock rights are never treated as property.
b. Stock rights are distributions by a corporation of rights to acquire its stock.
c. Distributions of stock dividends and stock rights are generally tax free to shareholders.
d. Expenses of issuing a stock dividend are not deductible but must be capitalized.

Answer 1

c