Identify Which of the Following Statements Is True

Identify which of the following statements is true.

A) Loans made to shareholders in proportion to their stock ownership in the corporation is evidence that the loans are disguised dividends.
B) If the shareholder can elect to receive distributing corporation stock or money, the receipt of distributing corporation stock will be a taxable dividend.
C) Corporate payments for the shareholder's benefit may be a taxable dividend.
D) All of the above are true.

Correct Answer:

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